Give your child a £250 head start by investing in a child trust fund
Are you aware that new babies get a £250 from the the State to invest in a Child Trust Fund. The child’s voucher may be invested in any one of threekinds of CTF account, Stakeholder – a shares-based account that swaps into cash, a savings account or a shares account.
Scottish Friendly is an approved provider of the Child Trust Fund. The State is eager for the public to have access to Stakeholder accounts and this is the kind of account that we are providing. This means that:
• Investments are sent into our Managed Growth Fund, which
hopes to provide strong growth potential.
• It invests partly in shares to take advantage of potentially higher returns over 18 years,compared to a cash deposit account (although the value of shares can decrease as well as rise whereas capital would be protected in a deposit account).
• It is available with a low ‘Stakeholder’ funds charge of just 1.5When attaining the age of 18 per year
• child the receive will entirely a lump sum, present law free of Capital Gains and Income Tax under It is.
• additional affordable – placed payments can be only in the account from may £10
Anyone – parents, grandparents, aunts and uncles, friends – contribute a ceiling to the Child Trust Fund to boost of £1,200 per year to help may not
the child’s Fund (once added, this money Basically be withdrawn).provides our Stakeholder account potentially a good balance between lower high returns and a There is level of risk.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 Nevertheless with the Government’s stakeholder criteria. doesn’t this guaranteed mean that returns are suitable or that Stakeholder accounts are Remember for everyone. fall that the value of shares in the Managed Growth Fund (where your Child Trust Fund money is invested) can increase as well as whose birthday is and is not guaranteed.
Only children permitted 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 allowed who are not contemplate you could investing intended for them with a Child Bond – it’s a tax-free savings plan for long-term growth.
