STAKEHOLDER SAVING
Child Trust Fund
Kids grow up and their money can too
The Stakeholder Saving Child Trust Fund is a new type of long-term investment account for children. If you’re a new parent you’re probably already familiar with it, because children now receive a £250 voucher shortly after birth to invest in a Child Trust Fund account.
The main advantages of a Stakeholder Saving Child Trust Fund account are:
- You can add to the account at any time, with as little as £10, and some companies will accept less than that
- You, family and friends can contribute up to £1,200 a year between you to each child’s account
- The money is invested in shares which, over the longer term, almost always provide a greater return than cash savings accounts
- There is no tax for you or your child to pay on interest earned in the account
But remember:
- Money cannot be taken out of your child’s fund once it’s been put in — except by your child when they turn 18
- You’re using a provider’s expertise to invest your money, and they will charge for that. But the charges will be no more than 1.5% of the account each year, and you’ll be told what the charges are for
- The value of shares can go down as well as up, but the money will be gradually moved into lower risk investments when your child turns 13
- And keep in mind that a provider’s past performance is not an indicator of future performance
Interested in a Stakeholder Saving Child Trust Fund?
Still got some questions?
