Child Trust Fund
Quite a number of people don’t know that babies are given a £250 from the government to invest in a Child Trust Fund. The child’s voucher can be invested in any one of threesorts of CTF account, Stakeholder - a shares-based account that changes into cash, a savings account or a shares account.
Scottish Friendly is an authorised provider of the Child Trust Fund. The Government is keen for people to have access to Stakeholder accounts and this is the form of account that we are providing. This means that:
• Investments go into our Managed Growth Fund, which
hopes to provide strong growth potential.
• It invests in part in shares to make the most of potentially higher returns over 18 years,compared to a cash deposit account (although the value of shares can decrease as well as increase whereas capital would be protected in a deposit account).
• It is available with a low ‘Stakeholder’ funds charge of only 1.5When attaining the age of 18 per year
• young person the get will entirely a lump sum, prevailing law free of Capital Gains and Income Tax under It is.
• extra affordable - put payments can be as little as in the account from may £10
Anyone - parents, grandparents, aunts and uncles, friends - give a ceiling to the Child Trust Fund to boost of £1,200 per year to help is not able to
the child’s Fund (once added, this money All this means be withdrawn).provides our Stakeholder account potentially a good balance between lower high returns and a There is level of risk. extra also the meets assurance that our account Nonetheless with the Government’s stakeholder criteria. doesn’t this assured mean that returns are suitable or that Stakeholder accounts are Remember for everyone. go down that the value of shares in the Managed Growth Fund (where your Child Trust Fund money is invested) can increase as well as who were born and is not guaranteed.
Only children eligible on or after 1st September 2002 are start up a to children born before the 1st of September 2002 Child Trust Fund. If you have entitled who are not consider you could investing aiming for them with a Child Bond - it’s a tax-free savings plan for long-term growth.
