SECURE YOUR CHILD’S FUTURE – TODAY!'
The Child Trust Fund (CTF), first announced by Chancellor Gordon Brown back in 2001 was officially launched back in April 2005.
If your child qualifies for a CTF, you would have been sent a Government voucher to use to open an account in your child’s name around the time of launch.
If you did not make a decision on where to invest your voucher, the government will have done this on your behalf!
The Government hopes that CTFs will achieve a number of aims, including:-
• teaching children the benefits of saving
• helping children get into the habit of saving
• ensuring that they have savings when they reach 18
The CTF is a long term investment account promoted by the Government for all children living in the UK born on or after 1st September 2002 and for whom child benefit is being awarded.
The Government commenced the scheme with the issuing of vouchers for £250, with an additional £250 paid where household income is below specific levels. A further contribution of an amount yet to be confirmed (though generally expected to be £250) will be made when child reaches the age of seven.
It’s not just parents who can contribute to a child’s account – family and friends can too, up to £1,200 in any one year, which does not include any contributions made by the Government.
Make the right choice
Choosing an approprite CTF account and provider and indeed ensuring it stays in the right place can be a difficult decision as there are over many different places where you can find out about or open an account for your child.
There are three generic types of account to choose from each of which has its own characteristics and attaching risks. In addition, it is important to keep track of the account.
The CTF is a long-term investment account for your child, however contributions once paid cannot be accessed ** until the child reaches the age of 18, at which point they take control of the fund.
Any decisions you make today will therefore have longer-term implications.
If you would like to discuss savings for your child/children’s future, please contact our office on 01915214408
** Except in the event of death or terminal illness