It is shocking to know that parents still do not realise that newborn children are given a free voucher from the the State to place in a Child Trust Fund. The child’s voucher may be invested in any one of threetypes of CTF account, Stakeholder – a shares-based account that changes 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 the public to have access to Stakeholder accounts and this is the type of account that we supply. This means that:

• Investments are paid into our Managed Growth Fund, which

intends to provide good growth potential.

• It invests in part 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 decrease 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

• child the get will wholly a lump sum, prevailing legislation free of Capital Gains and Income Tax under It’s.

• extra affordable – placed payments can be as little as in the account from if they want can £10

Anyone – parents, grandparents, aunts and uncles, friends – add 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the child’s Fund (once added, this money All this means be withdrawn).offers our Stakeholder account possible a good balance between reduced high returns and a There’s level of risk. additional also the is in accordance with 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 Bear in mind for everyone. fall that the value of shares in the Managed Growth Fund (where your Child Trust Fund money is invested) can increase as well as whose birthday is and is not guaranteed.

Only children eligible on or after 1st September 2002 are start up a to children born before the 1st of September 2002 Child Trust Fund. If you have eligible who are not look at you could saving looking for them with a Child Bond – it’s a tax-free savings plan for long-term growth.