Invest Your Totally Free Child Trust Fund Voucher with Scottish Friendly, so Your Litte One Can Have a Large Lump Sum of Money when They Reach Adulthood
Heard about the Child Trust Fund? Few UK parents markedly
sparse number of parents appear to have made the discovery that all infants receive a free £250 voucher from the government to invest. This vouchermay be invested in any one of threesorts of CTF account, Stakeholder – a shares-based account that changesinto cash, a savings account or a shares account. It is an excellent way to for the future life of a youngster
Scottish Friendly is an accredited provider of the Child Trust Fund Voucher. The Government is eager for people to have access to Stakeholder accounts and this is the type of account that we are offering. This means that:
Investments are paid into our Managed Growth Fund, which aims to provide strong growth potential
It invests partly in shares to get the benefit of potentially higher returns over 18 years,compared to a cash deposit account (although the value of shares canfall as well as rise whereas capital would be protected in a deposit account)
It comes with a low ‘Stakeholder’ funds charge of just 1.5% per year
At age 18 the child will get a lump sum, wholly free of Capital Gains and Income Tax under present legislation
It is very affordable – extra payments can be put in the account from as little as £10
One of the highights of the Child Trust Fund is that anyone – parents, grandparents, aunts and uncles, friends – may add to the Fund to an uppermost limit of £1,200 per year to help augment the child’s Fund (once added, this money is not allowed to be withdrawn).
In a nutshell our Stakeholder account provides a good balance between possible high returns and a reduced level of risk. There is also the additional assurance that our account meets with the Government’s stakeholder criteria. However this doesn’t mean that returns are guaranteed or that Stakeholder accounts are suitable for everyone. Bear in mind that the value of shares in the Managed Growth Fund (where your Child Trust Fund money is held) can fall as well as increase and is not guaranteed.
Only children born on or after 1st September 2002 are entitled to start up a Child Trust Fund. If you have above-mentioned date who are not entitled you could consider saving for them with a Child Bond – it’s a tax-free savings plan looking for long-term growth. It is evident that investing for your son is a rewarding means of preparing for the future.
