One of the duties of parenthood is to seek to procure a stable future for a child. It is something that a lot of mums and dads are eager to aim for and that is a praiseworthy thing to do. Unfortunately a significant proportion of these parents do not realise the saving opportunities that are available to them in Great Britain. Make no mistake if they fail to use to invest in the Child Trust Fund then they are really missing a trick.
So what exactly is a Child Trust Fund and what benefit does it give to mothers and fathers trying hard to save for a child? Basically the Child Trust Fund is a savings account for youngsters that mums and dads and other family members and friends can contribute too. No one is permitted to withdraw the money and when the boy gets to 18 he or she alone can withdraw it and do with it as he or she wants.
There are a number of inducements that the UK Government created when the scheme was set up that make investing in it a really attention-getting proposition. The cash that is in the Fund is able to grow free of Income and Capital Gains Tax so as a long term investment it is a useful way to build up a lump sum.
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 begin a Child Trust Fund and over the course of time 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 perhaps even at University.
All in all the Child Trust Fund is a savings opportunity that all parents should be aware of and take full advantage of.
Take a look here for more information about the Fund.
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