Kids of the present day will before too long come up against the harsh realities of the grown-up world. This means it is critical to be mindful of saving when they’re still growing up. Remarkably that awareness among those responsible for bringing up children has been shown to be unnoticed .
The entitlement is that
newly born babies receive a free £250 voucher from the government to put. So there is clearly an investment opportunity available. Your son or daughter’s vouchercan be invested in any one of threetypes of CTF account, Stakeholder – a shares-based account that swapsinto cash, a savings account or a shares account. It is a fantastic opportunity to invest needs of a child
Scottish Friendly is a designated provider of the Child Trust Fund. The Government is eager for people to have access to Stakeholder accounts and this is the form of account that we offer. This means that:
Investments go into Scottish Friendly’s Managed Growth Fund, which aims to provide good growth potential
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 candecrease as well as increase whereas capital would be protected in a deposit account)
It comes with a low ‘Stakeholder’ funds charge of just 1.5% per year
At age 18 the child will receive a lump sum, wholly free of Capital Gains and Income Tax under present law
It is very affordable – extra payments can be put in the account from as little as £10
