- Stakeholder Child Trust Funds
- Non Stakeholder Savings Child Trust Funds
- Non Stakeholder Equity Child Trust Funds
Non Stakeholder Child Trust Fund Savings Accounts
Considered by many as a safe and risk free investment, the Non Stakeholder Savings Child Trust Fund closely resembles an ordinary savings account with an attractive, tax-free rate of interest. Offered buy the vast majority of Banks and Building Societies, the Non Stakeholder Savings Child Trust Fund has a maximum contribution per annum of £1200 and additional contributions up to this maximum start from just £1. Although providers do make a charge for this type of Child Trust Fund account, the rate shown will be the actual rate you will receive as the charge is built into the headline rate of interest.
Banks and Building Societies will typically offer introductory or bonus rates of interest for a certain period of time. Such rates will almost certainly be subject to you having paid in a certain amount in a specified period of time and/or may apply for the first/second year only. Always take a moment to read the small print and familiarize yourself with the conditions of the offer! You can take advantage of the deals available by switching to a Child Trust Fund paying the higher rate of interest once your current bonus period expires as there is (currently) no charge for changing providers.
Although the capital is secure until your child's eighteenth birthday, the Non Stakeholder Savings Child Trust Fund does not offer the growth potential associated with the Stakeholder Child Trust Fund and the Non Stakeholder Equity Child Trust Fund Research undertaken by the Association of Mutual Insurers has shown in every year since 1978 (when records began), stocks and shares based investments have outperformed cash. You should also be aware of inflation, as this will also seek to reduce the value of the Non Stakeholder Savings Child Trust Fund.