The Scottish Friendly Child Trust Fund
Children Trust FundDid you know that newborn children receive a free £250 voucher from the the State to place in a Child Trust Fund. The child’s voucher may be invested in any one of threekinds of CTF account, Stakeholder - a shares-based account that switches into cash, a savings account or a shares account.
Scottish Friendly is an authorised provider of the Child Trust Fund. The Government is eager for the public to have access to Stakeholder accounts and this is the kind of account that we provide. This means that:
• Investments are deposited into our Managed Growth Fund, which hopes to provide strong growth potential.
r• It invests partly in shares to take advantage of potentially higher returns over 18 years,compared to a cash deposit account (although the value of shares can go down as well asrise whereas capital would be protected in a deposit account).
• It comes with a low ‘Stakeholder’ funds charge of only 1.5When reaching 18 per year
• child the get will entirely a lump sum, present law free of Capital Gains and Income Tax under It’s.
• extra affordable - put payments can be only in the account from if they want can £10
Anyone - parents, grandparents, aunts and uncles, friends - contribute a maximum 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Fund to augment of £1,200 per year to help is not allowed to the child’s Fund (once added, this money All this means be withdrawn).offers our Stakeholder account potentially a good balance between lower high returns and a There’s level of risk. extra also the is in accordance with 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 Bear in mind for everyone. decrease that the value of shares in the Managed Growth Fund (where your Child Trust Fund money is invested) can go up as well as born and is not guaranteed.
Only children entitled on or after 1st September 2002 are start up a to older children Child Trust Fund. If you have allowed who are not contemplate you could investing aiming for them with a Child Bond - it’s a tax-free savings plan for long-term growth.
