It’s best to start thinking about saving for your children’s future earlier than later. With a ” Savings Child Trust Fund ” you place your money for your childs CTF into a savings account. The great thing about a Savings Child Trust Fund is that your money is in a very low risk savings vehicle and your original investment is completely secure. Your money grows along with a savings rate so at the end of the term of the Savings Child Trust Fund you will have your original investment plus any interest earnt while it is in the fund. Although the yeild may not be as great as other types of Child Trust Fund investments like a shares child trust fund or Stake Holder Child Trust Funds you are safe in the knowledge that whatever happens your fund will grow.
The range of Child Trust Funds available are:
- Cash Child Trust Funds
- Sharia Child Trust Funds
- Share Child trust Funds
- Stakeholder Child Trust Funds
- Savings Child Trust Funds
- Ethical Child Trust Funds
The government gives every newborn child (after September 2001) a £250 voucher for their parents to open a Child Trust Fund and those families on Child Tax Credit will gain a further £250. Each year up to £1200 can be added to the child’s child trust fund (CTF) tax free. This is in addition to the government’s £250 contribution.
With so many child trust funds to choose from a handy way to shorten the selection process is to use the site compare child trust funds http://www.comparechildtrustfunds.co.uk
