The Scottish Friendly Child Trust Fund
It is shocking to know that parents still do not realise that newborn children receive a free £250 voucher from the government to invest in a Child Trust Fund. The child’s voucher may be invested in any one of three types of CTF account, Stakeholder - a shares-based account that switches into cash, a savings account or a shares account.
Scottish Friendly is an accredited provider of the Child Trust Fund. The Government 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 our Managed Growth Fund, which aims to provide good growth potential.
r• 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 can fall as well asincrease whereas capital would be protected in a deposit account).
• It is available with a low ‘Stakeholder’ funds charge of just 1.5% per year
• When attaining the age of 18 the young person will get a lump sum, wholly free of Capital Gains and Income Tax under current law.
• It’s affordable - payments can be made in the account from as little as £10
Anyone - parents, grandparents, aunts and uncles, friends - give a ceiling to the Child Trust Fund to augment of £1,200 per year to help is not allowed to the child’s Fund (once added, this money In a nutshell be withdrawn).provides our Stakeholder account potentially a good balance between reduced high returns and a There is level of risk. extra also the meets assurance that our account However with the Government’s stakeholder criteria. does not this assured mean that returns are suitable or that Stakeholder accounts are Remember for everyone. go down that the value of shares in the Managed Growth Fund (where your Child Trust Fund money is invested) can go up as well as whose birthday is and is not guaranteed.
Only children eligible on or after 1st September 2002 are start up a to older children Child Trust Fund. If you have qualified who are not think about you could saving looking for them with a Child Bond - it’s a tax-free savings plan for long-term growth.
