One of the responsibilities of parenthood is to attempt to ensure a good future for a child. It’s an objective that a lot of mums and dads are eager to aim for and that is a worthy thing to do. Unfortunately a significant proportion of those parents do not recognize the saving opportunities that are up for grabs in the United Kingdom. Be in no doubt that if they fail to use to invest in the Child Trust Fund then they are genuinely missing a trick.

So what precisely is a Child Trust Fund and what benefit does it give to parents trying hard to save for a child? Basically the Child Trust Fund is a savings account for children that parents and other family members and friends can chip in too. No one is permitted to withdraw the money and when the youngster reaches 18 he or she alone can withdraw it and do with it as he or she wants.

There are a range of inducements that the UK Government created when the scheme was introduced that make investing in it a very attractive proposition. The money that is in the Fund is allowed to grow free of Income and Capital Gains Tax so as a long term investment it is a great way to build up savings.

Perhaps the most exceptional part of the scheme is that the Chancellor gives every newborn child a voucher that is worth two hundred and fifty pounds. The voucher can be used to start a Child Trust Fund and over the years the money can build so that when it matures it can potentially help to fund the later stages of the young adult’s education at college or maybe even at University.

All in all the Child Trust Fund is a savings opportunity that mothers and fathers should be aware of and take full advantage of.

Visit the Scottish Friendly site for more information about the Fund.

This entry was posted on Tuesday, November 10th, 2009 at 5:30 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.