Invest Your Free Children Trust Fund Voucher with Scottish Friendly, so Your Litte One Can Have a Huge Lump Sum of Money when They Turn Eighteen
Do you know what the Child Trust Fund is? Hardly any mothers and fathers noticably
small number of parents seem to have made the discovery that all new babies receive a free £250 voucher from the government to put. The child’s vouchercan be invested in any one of threevarieties of CTF account, Stakeholder – a shares-based account that switchesinto cash, a savings account or a shares account. It is an excellent way to invest needs of a young person
Scottish Friendly is an accredited provider of the Child Trust Fund Voucher. The State is keen for the general public to have access to Stakeholder accounts and this is the kind of account that we are offering. This means that:
Investments go into Scottish Friendly’s Managed Growth Fund, which hopes to provide strong growth potential
An investment is made 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 candecrease 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 young person will get a lump sum, wholly free of Capital Gains and Income Tax under prevailing law
It’s affordable – additional payments can be placed in the account from as little as £10
An attractive feature of the Child Trust Fund is that anyone – parents, grandparents, aunts and uncles, friends – can give to the Fund to a maximum of £1,200 per year to help augment the child’s Fund (once added, this money is not able to be withdrawn).
In a nutshell our Stakeholder account provides a good balance between potentially high returns and a reduced level of risk. There’s also the extra assurance that our account complies with the Government’s stakeholder criteria. Nevertheless this does not mean that returns are assured or that Stakeholder accounts are appropriate for everyone. Remember that the value of shares in the Managed Growth Fund (where your Child Trust Fund money is invested) can go down as well as rise and is not guaranteed.
Only infants whose birthday is on or after 1st September 2002 are permitted to start up a Child Trust Fund. If you have above-mentioned date who are not entitled you could consider investing for them with a Child Bond – it’s a tax-free savings plan intended for long-term growth. It is undoubtedly the case that investing for a child is a sound means of preparing for tomorrow.
