Which kind of Child Trust Fund is right for you?
Skipton Building Society offers you a choice of either a stakeholder or cash Child Trust Fund.
Stakeholder Child Trust Fund provided by Family Investments
This Child Trust Fund invests most of your child's money in carefully selected shares to take advantage of what are expected to be higher rates of growth over the long term compared to a cash account. However, please remember that the capital is protected in a cash account whereas the value of stocks and shares can fall as well as rise and your child may get back less than has been paid in.
Then, on or before the child's 13th birthday, they will start to invest less in shares and more in fixed interest and cash investments. This is to help protect the value of the fund over the last few years of the investment.
To apply or to request an application pack, please click here or call Family Investments on 0800 028 3380 (Calls may be monitored or recorded for training purposes).
This CTF is provided by Family Investments. Neither Family Investments or Skipton Building Society is able to give you financial advice on the suitability of this product. If you have any doubts you should seek independent financial advice.
Cash Savings Child Trust Fund provided by Skipton Building Society
The Skipton Child Trust Fund is a non-stakeholder CTF which means that it is a straightforward 'cash' savings account. The money that's put in attracts interest and steadily accumulates until your child reaches the age of 18. Although the interest rate can change, you can be reassured that the money in the account is secure and will grow year on year.
The current interest rate for the non-stakeholder CTF is 6.25% gross pa/AER variable.
Cash savings over an 18 year term may not perform as well as money invested in shares over the long term, especially when inflation is taken into account. The effect of inflation means that money in the account could lose value over the long term as prices usually increase year on year.
If you require any more information before you apply, please call Skipton on 08457 171777* or visit your local branch.
AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and added each year.
Gross means the interest paid before the deduction of income tax at 20%.