Many Britons will choose to put money aside for the future and there are many different saving accounts to chose from. Although many will save money for their children’s future, one scheme means their child could already have up to £1000 in a Child Trust Fund. This is a fund set up by the Government which automatically gives children a sum of money at different stages in their lives. The money is deposited automatically and it can be claimed when children reach a certain age.
What is Child Trust Fund?
This fund was set up by the Government to give children £250 when they were born and a further £250 when they turned seven.
On top of this basic payment, low income families received double payments each time and could have as much as £1000 saved per child.
Even if parents did not open a Child Trust Fund account, they will still be able to access the money as the Government will have automatically opened the account and deposited the money on the child’s behalf.
This benefit applies to all children born between 1 September 2002 and 2 January 2011 and only applies to those who are eligible for child benefit.
When can the money be claimed?
The money is available to access when the child turns 18-years-old.
At this stage, the savings can either be reinvested into a similar adult ISA or can be used to fund immediate expenses such as university fees.
If parents forget to invest this money, the Government will chose a handful of providers to do so on their behalf.
Those who were born within the eligible dates will not yet be old enough to claim it, and families are being urged track down the account before the child turns 18.
Later in life, Britons may choose to invest their money in a number of different ways.
Setting up a private pension can be a way to put money aside to get later in life.
Most people receiving a private pension money will be eligible to get this money on top of their state pension.
The state pension is money paid to those who have reached state pension age and made the appropriate contributions during their lives.
However, this could be cut after an administrative error by HMRC and pensioners must check to see if they are affected.