KUFS Child Trust Fund
Children deserve the best start in life, and that’s the idea behind the Government’s Child Trust Fund scheme, which gives £250 to each newborn to be invested on their behalf.
Kingston Unity has always offered good financial products for young people, so it’s only natural we should offer a Kingston Unity version of the Child Trust Fund
A Child Trust Fund is a long term savings and investment account for your child that starts with the £250 Government ‘donation’, which comes in the form of special voucher that parents or carers use to open a Child Trust Fund account. The idea is that, ultimately, your child gets the all the proceeds of the account when they turn 18..
All children born in the UK now get a Child Trust Fund set up in their name. If their parents or carers don’t use the voucher provides, the Government does it for them! There’s no obligation to pay in any more money – except on the Government, who will make a further contribution when the child reaches seven, and maybe even another in their teenage years – but friends and family can add in up to £1,200 a year, on top of the Government contributions
All the money stays in the Child Trust Fund account until the child is 18, when they can do as they please with it. With all income or gains tax-free, it’s a great way to provide for some of the expenses of early adulthood.
To find out more about all the various kinds of Child Trust Fund available you can visit www.childtrustfund.gov.uk
Kingston Unity offers two Child Trust Fund options:
Kingston Unity’s Child Trust Funds
Both Kingston Unity Child Trust Fund accounts are ‘Investment’ accounts (as opposed to ‘savings’ accounts). We offer a ‘Non-Stakeholder Account’, or a ‘Stakeholder Account’. The difference between the two is in how your money is invested, and the level of risk involved.
Kingston Unity’s Non-Stakeholder Child Trust Fund Account combines investment in property, equities, fixed interest deposits, Government stocks and cash – which means striking a balance between the potential risks of the Stock Market, and the security of Government investments and property, with guaranteed returns. A bonus will be added to the account each year based upon the income earned. This account also insures the life of the child for 101% of their fund value.
Alternatively, we offer our Stakeholder Child Trust Fund Account. In this case your child’s money will be invested in shares through a unit-linked FTSE all-share Tracker Fund, managed by Legal & General. The value of the units will rise and fall in line with the performance of the UK Stock Market.
With both our Stakeholder and Non-Stakeholder Child Trust Fund Accounts, when the child reaches 13 there is the option to move money into lower risk investments, to protect their holding as they approach their 18th birthday.