Invest in a Child Trust Fund
It is shocking to know that parents still do not realise that newly born babies get a £250 from the government to place 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 approved provider of the Child Trust Fund. The State is keen for the public to have access to Stakeholder accounts and this is the sort of account that we are providing. This means that: • Investments are paid into our Managed Growth Fund, which hopes to provide good growth potential. r• 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 fall as well asgo up whereas capital would be protected in a deposit account). • It is available with a low ‘Stakeholder’ funds charge of only 1.5When attaining the age of 18 per year • child the receive will completely a lump sum, current legislation free of Capital Gains and Income Tax under It’s. • extra affordable - placed payments can be as little as in the account from can £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Child Trust Fund to boost of £1,200 per year to help cannot the child’s Fund (once added, this money In a nutshell be withdrawn).offers our Stakeholder account potentially a good balance between reduced high returns and a There is level of risk. extra also the complies assurance that our account However with the Government’s stakeholder criteria. doesn’t this guaranteed mean that returns are appropriate or that Stakeholder accounts are Bear in mind for everyone. go down 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 eligible on or after 1st September 2002 are open a to children born before the 1st of September 2002 Child Trust Fund. If you have eligible who are not consider you could saving looking for them with a Child Bond - it’s a tax-free savings plan for long-term growth.
