Style Money Guides
Child Trust Funds
All children born on or after 1st September 2002 are eligible for a present from the government - a cheque for at least £250 - that will kick start a new savings and investment account called the Child Trust Fund. Most parents have already received the cheque, but many will have simply popped the cheque in a drawer and forgotten about it. However, now is the time to get the money invested and working for your child. So where do you start?
The basics
To help pay for education in later life, and to get people into the habit of saving, the UK Government has decided to provide eligible children with a gift of at least £250 that must be invested in a suitable tax-free savings scheme. You invest it now, and when the child is seven, the Government will top it up with more cash. The child will not be able to access the money until they reach the age of 18, but by then it could be just the thing to help with university fees, put towards a deposit on their first home or a buy a car. To find out more about the fund, and to check out if your child is eligible, check out the government's official Child Trust Fund website.
Show me the cash
To make sure you invest in an approved scheme for your child, the money comes as a voucher that you then give to a bank or building society. Dozens of institutions have set up special Child Trust fund accounts. But before you simply stroll into the nearest bank and open an account, you should have a look round to compare what's on offer. And remember, if you don't open an account within 12 months of receiving the voucher, the Government will do it for you, so act now.
To help pay for education in later life, and to get people into the habit of saving, the UK Government has decided to provide eligible children with a gift of at least £250 that must be invested in a suitable tax-free savings scheme. You invest it now, and when the child is seven, the Government will top it up with more cash. The child will not be able to access the money until they reach the age of 18, but by then it could be just the thing to help with university fees, put towards a deposit on their first home or a buy a car. To find out more about the fund, and to check out if your child is eligible, check out the government's official Child Trust Fund website.
Show me the cash
To make sure you invest in an approved scheme for your child, the money comes as a voucher that you then give to a bank or building society. Dozens of institutions have set up special Child Trust fund accounts. But before you simply stroll into the nearest bank and open an account, you should have a look round to compare what's on offer. And remember, if you don't open an account within 12 months of receiving the voucher, the Government will do it for you, so act now.
