Child Trust Fund Stakeholder Accounts

 

 

Stakeholder child trust fund accounts invest your childs money in the shares of companies whose rules reduce the risk of investing in shares. Any monies are not simply invested in one company, where you could loose out if they did poorly, but instead it is invested in a number of companies hence greatly reducing the risk of loss.

With a stakeholder child trust fund, once your child reaches 13, the money is moved into even more risk free investments or assets. The percentage (amount) moved depends on the CFT providers and on how well the shares are currently performing. This form of saving is designed to lesson the risk of any losses, the closer your child gets to being 18.

The child trust fund providers who operate a stakeholder account are legally unable to charge you more than 1.5 percent per year. This means you will never be charged more than £1.50 for every £100 you have in the account. This is not the case with other forms of CFT accounts.

If you are a parent or guardian under the age of 16, you will be unable to open an account on your childs behalf. If this is the case, the government will open a stakeholder account for you. The inland revenue will let you know which provider the account is with and once a year you will receive a statement showing how the account is performing. You can still invest extra payments up to the £1200 limit if you so wish.

Once you receive your initial voucher from the government, you have until it expires to open the account. Failure to openan account in time will result in the government automatically opening a stakeholder child trust fund account on your behalf.

Apply For Equity Child Trust Fund Account

Apply For Saving Child Trust Fund Account

Apply For Stakeholder Child Trust Fund Account