Non Stakeholder Shares Child Trust Fund

Unlike the Stakeholder Child Trust Fund account, a Non Stakeholder Shares Child Trust Fund account is not subject to a strict government ruleset. Subsequently there are more investment opportunities available to you.

Once again however the onus will be on you to select the most appropriate fund to suit your own personal or family circumstances. Whether you're a believer in past performance (which is of course not a guide to future performance) or use investment reputation to help you decide, this time you will need to pay particular attention to the initial set-up fees and ongoing annual management charges.

As there is no cap on fees, providers are in charge of setting their own annual management charges. In order to remain competitive, annual management charges are however inline with those of the Stakeholder Child Trust Fund account and are typically 1.5%. Initial setup charges are commonplace and do vary quite considerably. Fees of 5%+ are not unusual.

With 'Lifestyling' no longer a requirement you will be responsible for the 'safe landing' of your child's Non Stakeholder Shares Child Trust Fund account in the few years preceeding your child's eighteenth birthday. A feature of the Stakeholder Child Trust Fund account, 'lifestyling' aims to protect the value of the accumulated fund by moving it into a mix of cash deposits and government securities (gilts).

Capped at £1200 per annum, the maxmimum collective contributions by you, your family and friends remains unchanged. Providers are however free to set their own minimum amount and are no longer obliged to accept £10 as a minimum payment. Furthermore, Direct Debit, Direct Credit, Cheque and Standing Order payment methods may, or may not be permitted.