Yorkshire Building Society has announced a strategic alliance with Homeowners Friendly Society to offer a full range of child trust fund products.
The child trust fund is a new government scheme to encourage saving, by providing every baby in England with at least a £250 savings bond. This will accrue interest tax free, and can be added to by friends or family of the child, until the fund matures on the child's 18th birthday.
To be eligible the child must have been born after September 2002 and qualify for Child Benefit. To obtain the £500 gift they must live in a household with a combined income of less than £13,500 a year.
With the new alliance in place Homeowners will provide Yorkshire Building Society with a stakeholder child trust fund and Yorkshire will offer its own deposit fund.
"There is a big savings gap in the UK and the launch of the child trust fund initiative will start to address the problem," Iain Cornish, chief executive of Yorkshire Building Society.
Both organisations' products will be marketed through Yorkshire's 131-strong branch network.To read more about investing for children, click here.
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