Child Trust Fund Comparison

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Every child born on or after September 1st 2002 receives a £250 savings voucher from the Government in order to start a Child Trust Fund, and then a further £250 at age seven.

There are many different fund providers and three account options available offering varying levels of risk, so it is advisable to do a Child Trust Fund comparison to ensure you find the best deal for your child.

• guarantee children have savings when they reach 18
• help children understand the benefits of saving
• get children into the habit of putting money away
• help children understand about personal finance

There are three main types of account and it is up to the parents to do a Child Trust Fund comparison and work out the best option for their child.

• Savings Accounts: A safe option. The money is secure, and on reaching 18 the child will receive any money put into the account plus interest.
• Accounts that invest in shares : A riskier option. These accounts invest your child’s money by buying shares in companies. When those companies do well and the shares go up in value, they make money, but if they go down, money can be lost.
• Stakeholder accounts: A lower risk option. Stakeholder accounts also invest your child’s money in shares, but the Government has made certain rules, i.e. the money has to be invested in a number of different companies to reduce the risk.