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I thought I would update you all on how the UK
Child Trust Fund (Baby Bonds) is working after almost 2 years.
Just to recall every child born on or after the 1st
of September 2002 received a voucher of £250 (an extra £250 for "poor
families").
These vouchers have to be invested in a
licenced CTF Acount. The child can withdraw the money when they reach
18.
Parents or others can invest up to
£1,200 per year in the account and all the
money in the account is free from Capital Gains and Income Tax.
Many financial institutions including Banks,
Building Societies, Insurance Companies and even the Post Office have set up
accounts and are offering incentives like enhanced Interest ratesand one of cash
bonuses to people to invest.
There are two types of accounts you can invest in
Equity and Cash.
Both my two Granddaughter's have accounts in the
Nationwide Building Society, you can get details on what they have to offer by
logging on to their web site www.nationwide.co.uk and look for Child
Trust Fund.
Regards, David
Wheatcroft
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