Save Your Totally Free Child Trust Fund Voucher with Scottish Friendly, so Your Son or Daughter Can Have a Huge Lump Sum when They Turn 18
Have you got to grips with the Child Trust Fund and the benefits that it can bestow upon your kids? A markedly
insubstantial number of parents seem to be aware of the fact that all newly born babies receive a free £250 voucher from the the State to invest. This vouchermay be invested in any one of threetypes of CTF account, Stakeholder – a shares-based account that switchesinto cash, a savings account or a shares account. It is a superb chance to save life of a youngster
Scottish Friendly is a designated provider of the Child Trust Fund Voucher. The State is keen for the public to have access to Stakeholder accounts and this is the sort of account that we offer. This means that:
• Investments are saved into our 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 cango down as well as rise whereas capital would be protected in a deposit account)
• It is available with a low ‘Stakeholder’ funds charge of just 1.5% per year
• At age 18 the young person will get a lump sum, totally free of Capital Gains and Income Tax under present law
• It’s affordable – additional payments can be put in the account from only £10
A notable attraction of the Child Trust Fund is that anyone – parents, grandparents, aunts and uncles, friends – if they want can contribute to the Fund to a top limit of £1,200 per year to help increase the child’s Fund (once added, this money may not be withdrawn).
Put succinctly our Stakeholder account offers a good balance between potentially high returns and a reduced level of risk. There is also the extra assurance that our account meets with the Government’s stakeholder criteria. Nevertheless this doesn’t mean that returns are assured or that Stakeholder accounts are appropriate for everyone. Bear in mind that the value of shares in the Managed Growth Fund (where your Child Trust Fund money is placed) can decrease as well as rise and isn’t guaranteed.
Only children born on or after 1st September 2002 are authorised to open a Child Trust Fund. If you have older children who are not entitled you could think about saving for them with a Child Bond – it’s a tax-free savings plan looking for long-term growth. It is undoubtedly the case that saving for your son is a rewarding means of preparing for the world to come.
