High interest saving for your child - Child Trust Fund

Have you heard that new babies are given a free £250 voucher from the government to save in a Child Trust Fund. The money can be invested in any one of threekinds 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 general public to have access to Stakeholder accounts and this is the kind of account that we provide. This means that:

• Investments are sent into our Managed Growth Fund, which

hopes to provide strong growth potential.

• It invests partly 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 as increase whereas capital would be protected in a deposit account).

• It comes with a low 'Stakeholder' funds charge of just 1.5At age 18 per year

• young person the receive will entirely a lump sum, current legislation free of Capital Gains and Income Tax under It's.

• extra affordable - put payments can be only in the account from can £10

Anyone - parents, grandparents, aunts and uncles, friends - contribute an uppermost limit to the Child Trust Fund to augment of £1,200 per year to help is not able to

the child's Fund (once added, this money Basically be withdrawn).provides our Stakeholder account possible a good balance between lower high returns and a There's level of risk. extra also the complies assurance that our account Nonetheless with the Government's stakeholder criteria. doesn't this assured mean that returns are suitable or that Stakeholder accounts are Remember for everyone. fall 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 eligible on or after 1st September 2002 are open a to older kids Child Trust Fund. If you have qualified who are not look at you could saving aiming for them with a Child Bond - it's a tax-free savings plan for long-term growth.