Non Stakeholder Savings Child Trust Fund

 

Considered a safe and risk free investment, the Non Stakeholder Savings Child Trust Fund account is offered by various Child Trust Fund providers (Banks and Building Societies). The account comprises a savings account (minimum additional contributions from as low at £1) with a very attractive rate of interest. Whilst providers do make a charge for providing this type of account, the charge is built into the rate of interest they offer you. 

 

Child Trust Fund providers frequently offer two rates of interest on this type of account - a basic rate and a bonus rate of interest. Bonus rates of interest will almost certainly be subject to you having paid in a certain amout in a specified period of time and/or may apply for the first year only. You can of course use this to your advantage by switching once the bonus period ends as there is (currently) no charge for changing providers.

 

Although the capital is secure until your child's eighteenth birthday, the Savings Child Trust account does not offer the growth potential associated with the Stakeholder CTF and Non-Stakeholder Shares CTF accounts. Market research (Association of Mutual Insurers) has shown in every year since 1978 when records began, stocks and shares have outperformed cash. The effect of inflation will also seek to reduce the value of this type of Child Trust Fund account.

 

As with the other types of Child Trust Fund accounts, you should select the account which is most suitable for you situation and inline with your investment objectives. As always, if you are in any doubt you are strongly advised to seek professional financial advice. To find a financial adviser in your area visit Unbiased.

 

CTF Provider Rates Bonus Conditions
 
Basic %
Bonus %
 
Abbey National
5.25
5.75
 Minimum balance of £750
Bristol Credit Union
5.50
n/a
  
Britannia Building Society
6.25
7.50
 Open before 6th April 2008, bonus paid for first 2 years.
Cambridge Building Society
6.50
n/a
  
Chorley Building Society
6.85
6.85
 Minimum balance of £250
Earl Shilton Building Society
6.05
6.55
 Minimum additional subscription of £240 per year within the first two years.
Furness Building Society
5.95
n/a
  
Hanley Economic Building Society
8.00
8.00
 Minimum balance of £250
Ipswich Building Society
5.85
n/a
  
Leeds Building Society
5.75
7.00
 Minimum of two £600 annual payments within the first two years.
Leicester Credit Union (Clockwise)
5.50
n/a
  
Leeds Credit Union
5.00
n/a
  
Monmouthshire Building Society
5.50
6.75
 Minimum of additional £250 or more paid into the account each year in the first two subscription years of the account.
Nationwide Building Society
6.00
7.00
 Minimum payment of £240 paid into the account each year.
Shepshed Building Society
7.25
n/a
  
Skipton Building Society
7.00
n/a
  
Yorkshire Building Society
6.35
7.05
 Bonus paid for the first year of account only.

 

Last Updated 09-January-2008
 
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