Child Trust Fund Launched!
19th May 2009
In December last year the Society launched a Stakeholder Child Trust Fund Account, which gives members and non-members with children, born after 1 September 2002, the opportunity to invest their Child Trust Fund with us.
Under this scheme the Government provides an initial sum, normally £250.00, to invest on behalf of the child. The child's parents, grandparents, relatives or friends can add to this each year up to a maximum of £1,200 and the Government will make another contribution when the child reaches the age of seven. The money remains invested until the child reaches the age of 18 when it will be either paid out to him/her or transferred into an ISA in the child's name.
The Child Trust Fund is an ideal way to give a child a good start as they enter adult life and the funds have a number of potential uses - perhaps university fees, a first car or even a deposit on a first home. Topping up the Child Trust Fund would clearly have a significant impact on the final value and you can see examples of the potential returns using the online calculator at www.childtrustfund.gov.uk. The Society's Tax Exempt Savings Plan is also a popular way to save regularly for children.
The Society operates a Stakeholder Child Trust Fund, which meets certain standards set by the Government.
The requirements are:
- The funds in the account should be invested predominantly in the stock market and in the shares of a spread of companies.
- Charges must not be more than 1.5% of the value of the fund in the account each year.
- Additional payments of £10.00 or more must be accepted by cheque, cash, direct debit, or standing order.
- There must be a facility for life-styling when the child reaches 13. This is the process of switching the fund in the account gradually to lower risk investments in order to provide some protection from the possibility of stock market losses as the child reaches 18.
