Finance Choices
Family Investments
Who are Family Investments?
Family Investments is a mutual organisation with almost 30 years' experience in providing investments for families. In fact, they currently look after around £1.5 billion of family money for over 500,000 people in the UK and have a long track record in offering savings policies for children. Ideal recipitents of your Child Trust Fund.
What's a Child Trust Fund?
The Child Trust Fund gives the savings of every child born on or after 1st September 2002 a financial boost to the tune of at least £250. This figure can rise to £500 if your family is awarded the full Child Tax Credit. The initial £250 payment will take the form of a voucher, automatically sent to qualifying families during the first few months of 2005. And after that new parents should receive their vouchers once they start receiving Child Benefit.
When you receive your voucher, you must then invest it in a Child Trust Fund account. There are different types of account available and you may decide to choose one that meets all the government's stakeholder criteria. If so, you don't have to look any further than the Child Trust Fund account from Family Investments.
The good news is that anyone can make extra payments to the account, whether regular or one-offs up to a combined total of £1,200 each year. And returns are free of personal income tax and capital gains tax. Click here for more information.
Will my child get one?
If you can answer yes to all the following questions, then your child should receive a Child Trust Fund voucher and be entitled to open an account.
Family Investments is a mutual organisation with almost 30 years' experience in providing investments for families. In fact, they currently look after around £1.5 billion of family money for over 500,000 people in the UK and have a long track record in offering savings policies for children. Ideal recipitents of your Child Trust Fund.
What's a Child Trust Fund?
The Child Trust Fund gives the savings of every child born on or after 1st September 2002 a financial boost to the tune of at least £250. This figure can rise to £500 if your family is awarded the full Child Tax Credit. The initial £250 payment will take the form of a voucher, automatically sent to qualifying families during the first few months of 2005. And after that new parents should receive their vouchers once they start receiving Child Benefit.
When you receive your voucher, you must then invest it in a Child Trust Fund account. There are different types of account available and you may decide to choose one that meets all the government's stakeholder criteria. If so, you don't have to look any further than the Child Trust Fund account from Family Investments.
The good news is that anyone can make extra payments to the account, whether regular or one-offs up to a combined total of £1,200 each year. And returns are free of personal income tax and capital gains tax. Click here for more information.
Will my child get one?
If you can answer yes to all the following questions, then your child should receive a Child Trust Fund voucher and be entitled to open an account.
- Was your child born on or after 1st September 2002?
- Is your child a UK resident?
- Do you get Child Benefit for your child?
posted by Barbara Gordon at 9:14 AM
Family Investments
7 Comments:
There are a variety of different Child Trust Fund accounts like those that invest in stocks and shares (sometimes known as an equity account) or deposit-type accounts. However not every account you find meets the government's criteria meaning that it?s a ?stakeholder? account. I'm happy to say that the Child Trust Fund from Family Investments fully meets these standards and is therefore a stakeholder account (although this does not necessarily mean it is suitable for every child or that performance is guaranteed by the government).
Well after almost opting for the savings account route (Nationwide was loking good) I decided to put mine into the Family Investments account.
I like the fact that it has the potential to benefit from stock market growth, and I feel this type of account will outperform any savings account Child Trust Fund.
I am very dubious about the fact that the child has full control over the money at 18, so what I will probably do is invest the child benefit directly into the account for a few years, then start a seperate account which I can retain control of and funnel the child benefit into that.
Any tops ups I make I will have to choose which account to put these in, and this decision will probably be based on how well behaved the little devil has been prior to that time...........
I think this whole thing is really complex and not enough information has seeped down to us from the government. I dont know too much about what exactly an "OEIC Tracker" is apart from it is similar to a unit trust, and after reading some articles the Family Investments account comes out as one of the top recommendations for those wanting to go the stakeholder route.
i just hope I made a good choice, but even if I didnt, I can always change the account in a year or so.
The Child Trust Fund is one of the best ideas this government came up with. Every parent wants to save for their child but lack the incentive to do so. By initiating this scheme they gave parents all across the country the incentive tool to go ahead and start saving. The only flaw in this scheme is the exclusion of children born before 2002 but I guess they had to draw the line somewhere.
Carpy, I think on the face of it you've made a good choice, but of course nobody knows for sure until the money is in your (or your childs) hands at the end of it.
Good luck anyway, at least you can relax in the knowledge you've done some research and made an informed choice rather than sticking a pin into the newspaper etc.
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