| The Child Trust Fund (CTF) is a long-term
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| | with a greater element of risk. To find
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| savings and investment plan set up by the
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| | an account which offers the best return
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| Government to encourage you to save for
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| | on investment, compares the best
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| your children's future. Applicable for
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| | performing Stakeholder Child Trust Fund
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| all children born after 1 September 2002
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| | accounts of the last two years and offers
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| and living in the UK, an initial £250
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| | parent reviews of these products. To
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| sum is paid out at birth (£500 if your
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| | compare Child Trust Funds, the return on
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| household income is below
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| | investment from cash and shares differs
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| £14,495)xfollowed by an additional £250
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| | widely. Compare £250 in the best cash
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| when your child turns seven. In addition
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| | savings account on offer (7.15% from
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| to the money paid into this account by
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| | Britannia Building Society) which will
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| the Government, you, your family and
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| | yield £287.03 over two years while the
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| friends can contribute up to £1,200 each
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| | best performing stakeholder Child Trust
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| year. Your children's voucher can be
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| | Fund (Family Investment's Ethical
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| invested in one of three types of
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| | Account) will see this money grow to
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| accounts: Cash, Stakeholder or Shares.
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| | £377.70, a 25% higher return. If you
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| Cash Accounts operate much like savings
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| | invest the maximum annual allowance of
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| accounts, with interest earned on the sum
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| | £1,200 in this stakeholder account, your
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| invested. Stakeholder Accounts invest
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| | investment can be worth £1,812.96. When
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| your children's money in shares from a
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| | you compare your children's Child Trust
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| variety of companies, moving the money to
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| | Fund accounts, it is worth noting that
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| lower risk investments or assets
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| | funds which offer the greatest returns
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| (lifestyling) when your child turns
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| | also offer the greatest risks. However,
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| thirteen. The fees for these accounts are
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| | most experts will agree that over time
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| limited by the government to no more than
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| | shares will out perform cash savings. "It
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| 1.5% a year. Shares Accounts operate
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| | is very important that parents and
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| similarly to the Stakeholder Accounts,
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| | grandparents take a long-term view ….
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| but are not subject to the same
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| | when you compare Child Trust Funds" says
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| government limitations on fee
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| | Tony Vine-Lott, director general of Tax
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| percentages. So which type of account is
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| | Incentive Savings Association (TISA). Ben
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| best for you and how can you best compare
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| | Yearsley of independent financial adviser
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| Child Trust Funds? The lower risk option
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| | (IFA) Hargreaves Lansdown. "I would back
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| is a cash account with the highest
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| | equities over cash. The markets go up and
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| returns varying from 6-7%. Various
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| | down and are volatile, but over such a
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| websites compare the interest rates of
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| | time, it's the best option." Which ever
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| numerous Cash Child Trust Fund accounts
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| | decisions you choose, you will still
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| on the market and list which accounts
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| | better off than the 25% of parents who
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| offer introductory bonuses. The only one
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| | choose not to do anything at all. Just
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| to be FSA regulated, as far as we know,
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| | remember to shop around and compare Child
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| is Stakeholder and Shares Accounts
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| | Trust Funds before you act, as it will be
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| potentially offer a much greater return
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| | time well spent. Happy EggNesting!!!
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| in comparison to the cash accounts, but
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