Child Trust Fund Saving Accounts

 

With a Child Trust Fund Savings account, all the money you invest in it remains secure. If you simply invested the £250 voucher from the government, together with an additional £250, making £500 in all, your child would get that money back together with any interest it acrued over the eighteen year period. This method of saving is a risk free method and is great for people who dont want to worry about external market factors, such as how well or not so well the stock market is performing.

You do need to be aware that although your money does earn interest in a child trust fund savings account, it may not grow as much as it would if it was invested in and Equity based child trust fund account.

Monies in a child trust fund savings account can also get eroded by inflation. At the current moment in time, inflation is relatively low and so does not pose as such a threat to savings as it did in the early nineties. Remember inflation pushes up everyday prices, making general things more expensive. If this happens at a higher rate than the rate of your savings, your savings will in effect decrease in value over time ie they wont buy as much tomorrow as thay would today.

Which ever child trust fund account you choose, the provider (child trust fund company) will take a percentage of the fund as charges. Thses are to cover the costs of administering the account. With the Child Trust Fund Savings account, these costs are usually swallowed up before the provider decides how much interest to pay you.

Whichever child trust fund account you opt for you can change. Most if not all companies will however make a charge for transfering investments from one scheme to another. You will need to be careful as moving from a savings account may cost an equivalent sum to one years worth of interest.

You do not have to add any money to that which the government give if you dont wish to or simply cant afford to. If this is the case you will need to pay close attention to the terms from some providers as some do require minimum or regular payments to be made.

Remember any money you pay into your childs CFT is locked away for 18 years and is untouchable by you - it belongs to your child. Only they can withdraw it on or after their 18th birthday. Dont over stretch yourself!

 

Apply For Saving Child Trust Fund Account

Apply For Equity Child Trust Fund Account

Apply For Stakeholder Child Trust Fund Account