Save Your Free Children Trust Fund Voucher with Scottish Friendly, so Your Son or Daughter Can Have a Huge Lump Sum of Money when They Reach Adulthood
Have you got to grips with the Child Trust Fund and the benefits that it can bestow upon your kids? Not many UK parents surprisingly
insubstantial number of parents seem to be aware of the fact that all infants get a free £250 voucher from the government to put. This vouchercan be invested in any one of threekinds of CTF account, Stakeholder – a shares-based account that switchesinto cash, a savings account or a shares account. It is a great opportunity to for the future financial requirements of a young person
Scottish Friendly is a licensed provider of the Child Trust Fund Voucher. The State is eager for people to have access to Stakeholder accounts and this is the type of account that we are supplying. This means that:
Investments are paid into Scottish Friendly’s Managed Growth Fund, which hopes to provide good growth potential
It invests partly 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
When reaching 18 the young person will get a lump sum, wholly free of Capital Gains and Income Tax under present legislation
It is very affordable – additional payments can be placed in the account from only £10
An interesting feature of the Child Trust Fund is that anyone – parents, grandparents, aunts and uncles, friends – if they want can give to the Fund to a maximum of £1,200 per year to help boost the child’s Fund (once added, this money cannot be withdrawn).
Put succinctly our Stakeholder account provides a good balance between possible high returns and a reduced level of risk. There’s also the additional assurance that our account is in accordance with with the Government’s stakeholder criteria. However this does not mean that returns are guaranteed 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 placed) can go down as well as increase and isn’t guaranteed.
Only infants who were born on or after 1st September 2002 are authorised to open a Child Trust Fund. If you have older kids who are not allowed you could consider investing for them with a Child Bond – it’s a tax-free savings plan intended for long-term growth. It is evident that saving for your son is a sensible means of preparing for hard times that may lie ahead.
