When it comes to saving money, many people will chose to put some aside for their children’s future. However, a Child Trust Fund set up by the Government could mean children already have up to £1,000 in the bank. 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. 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.
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.