Future Prosperity and the Child Trust Fund Voucher

By: Richard Robertson
Submitted: 2009-09-25 15:15:23
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So what is this Child Trust Fund that all the talk is about?  If you have not found out about it you should make urgent enquiries because it really is something that is not to be missed.

A noticably modest number of parents seem to realise that all newly born babies are given a free £250 voucher from the government to invest. For those who have children to raise the money that is available will be very useful. The child's voucher can be invested in any one of three sorts of CTF account, Stakeholder - a shares-based account that changes into cash, a savings account or a shares account. It is an excellent way to prepare for the needs of a young person. Scottish Friendly is a designated provider of the child trust fund. The State is keen for the public to have access to Stakeholder accounts and this is the kind of account that we are catering for. A notable attraction of saving for children is that anyone - parents, grandparents, aunts and uncles, friends - if they want can give to the Fund to a ceiling of £1,200 per year to help augment the Fund (once added, this money may not be withdrawn).

Do bear in mind that there are some restrictions in place - the scheme is open to most but not everyone. Only infants born on or after 1st September 2002 are entitled to open a Children Trust Fund.  If you have children born before the above-mentioned date who are not eligible you could look at investing for them with a Child Bond - it's a tax-free savings plan intended for long-term growth. It is an alternative option that is well worth considering.

The fundamental point is that saving for your children is a sound means of preparing them for the world to come. It also provides an element of protection and the instincts of most parents will be to do all they can to ensure the well-being of their sons and daughters.

In summing up, the fact that it is now possible for parents in the UK to make savings for their children in a form that is tax free should give impetus to many to start saving for their children. Even if you are not a parent yourself it is perfectly possible to contribute to the Fund of other family members. The Government hopes that by setting up this iniative more people will see the benefits and rewards that come with long term saving. The hope is that young people who find themselves benefitting from these Funds will in turn start to contribute to the funds of other young family members. In this way a growing number of people in Great Britain will get into the habit of putting money aside for the future. The Government was concerned that levels of saving by people was too low and this scheme was hoped to kickstart a savings boom.

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