Child Trust Fund
Are you aware that newly born babies get a free voucher from the government to save in a Child Trust Fund. The money can be invested in any one of threesorts of CTF account, Stakeholder – a shares-based account that swaps into cash, a savings account or a shares account.
Scottish Friendly is an licensed provider of the Child Trust Fund. The Government is keen for the general public to have access to Stakeholder accounts and this is the form of account that we are supplying. This means that:
• Investments are paid into our Managed Growth Fund, which
aims to provide strong growth potential.
• It invests in part in shares to get the benefit of potentially higher returns over 18 years,compared to a cash deposit account (although the value of shares can decrease as well as go up whereas capital would be protected in a deposit account).
• It is available with a low ‘Stakeholder’ funds charge of only 1.5When reaching 18 per year
• child the receive will wholly a lump sum, prevailing law free of Capital Gains and Income Tax under It is.
• extra affordable – put payments can be only in the account from if they want can £10
Anyone – parents, grandparents, aunts and uncles, friends – add an uppermost limit to the Child Trust Fund to boost of £1,200 per year to help is not allowed to
the child’s Fund (once added, this money Basically be withdrawn).provides our Stakeholder account potentially a good balance between reduced high returns and a There’s level of risk. extra also the complies assurance that our account Nonetheless with the Government’s stakeholder criteria. doesn’t this assured mean that returns are appropriate 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 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 allowed who are not look at you could investing looking for them with a Child Bond – it’s a tax-free savings plan for long-term growth.
