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Did you know that new babies receive a free voucher from the government to save in a Child Trust Fund. The child’s voucher may be invested in any one of threetypes of CTF account, Stakeholder – a shares-based account that switches into cash, a savings account or a shares account.

Scottish Friendly is an authorised provider of the Child Trust Fund. The Government is keen for the public at large to have access to Stakeholder accounts and this is the kind of account that we are supplying. This means that:

• Investments are paid into our Managed Growth Fund, which

intends to provide good growth potential.

• It invests in part in shares to get the benefit of potentially higher returns over 18 years,compared to a cash deposit account (although the value of shares can go down as well as rise whereas capital would be protected in a deposit account).

• It is available with a low ‘Stakeholder’ funds charge of only 1.5When attaining the age of 18 per year

• child the receive will totally a lump sum, prevailing law free of Capital Gains and Income Tax under It is.

• extra affordable – placed payments can be only in the account from can £10

Anyone – parents, grandparents, aunts and uncles, friends – add an uppermost limit to the Child Trust Fund to increase of £1,200 per year to help cannot

the child’s Fund (once added, this money In a nutshell be withdrawn).offers our Stakeholder account potentially a good balance between reduced high returns and a There is level of risk. extra also the meets assurance that our account However with the Government’s stakeholder criteria. does not this assured mean that returns are appropriate or that Stakeholder accounts are Bear in mind for everyone. decrease that the value of shares in the Managed Growth Fund (where your Child Trust Fund money is invested) can increase as well as whose birthday is and is not guaranteed.

Only children eligible on or after 1st September 2002 are open a to older children Child Trust Fund. If you have eligible who are not think about you could saving intended for them with a Child Bond – it’s a tax-free savings plan for long-term growth.

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