Children’s Savings Plans

Many young children may alresdy have a Child Trust Fund (CTF) which is a savings and investment account for children born between 1 September 2002 and 2 January 2011.  Ch.  The account belongs to the child and can’t be touched until they turn 18.  The Government made significant changes to CTF from August 2010 and January 2011.
The person who opened the account is responsible for managing up until the child is aged 18
Those schemes which are in operation can continue. There was three types of account
savings
schemes that invest in shares
Stakeholder schemes
The government has stopped issuing Child Trust Fund vouchers for children born after 2 January 2011.

Most government payments to Child Trust Fund accounts have now ended.

If you child already has an account it won’t be affected by these changes.  Anyone can still make payments into it until the child is 18.

Many Grandparents wish to make some provision for their grandchildren and Nicholls Stevens can p0rovide advice in this area

The Government are proposing to introduce a child’s ISA – more details to follow

Investment Managers such as Invesco Perpetual offer regular savings plans. The attraction of these schemes is that there is no fixed term for saving and the child should benefit form the long term advantage of investing in equities via a collective fund.

Friendly Societies offer 10 year savings plans – you can only invest a small amount of premium and the charges are quite often high.

Personal Pensions – you can start funding a personal pension for a child from age zero. A contribution of up to £2,880 can be paid to which the Government add a further £720 tax relief. There is no commitment to pay regular contributions.

NS&I – Children’s bonus bond or National Savings Certificates when available give a tax free return.