Are you aware that newly born babies receive a £250 from the government to put in a Child Trust Fund. The money can be invested in any one of threesorts 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 State is eager for the public at large to have access to Stakeholder accounts and this is the kind of account that we are offering. This means that:
• Investments go into our Managed Growth Fund, which aims to provide strong growth potential.
r• It invests in part 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
• At age 18 the child will get a lump sum, completely free of Capital Gains and Income Tax under current legislation.
• It is affordable - Extra payments can be put in to the account from £10
Anyone - parents, grandparents, aunts and uncles, friends - can add a maximum of £1,200 per year to the Child Trust Fund to increase the child’s Fund (once added, this money may not be withdrawn).In a nutshell our Stakeholder account offers a good balance between possible high returns and a lower level of risk. Our account meets the Government’s stakeholder criteria. Remember that the value of shares in the Managed Growth Fund (where your Child Trust Fund money is invested) can go up as well as go down and is not guaranteed.
Only children whose birthday is on or after 1st September 2002 are qualified to start up a Child Trust Fund. If you have older kids who are not qualified you could contemplate investing for them with a Child Bond - it’s a tax-free savings plan for long-term growth.