Child trust fund
Invest your child's £250 Government voucher in a Tesco Child Trust Fund.
Looking at your child now, it’s probably hard to imagine them all grown up! But it's important to plan ahead if you want to help make sure your child is financially secure as they grow up.
Lots of children need a helping hand with the cost of going to college or university, buying their first car, or for the deposit for their first home. The Child Trust Fund is designed to make it easier for you to save for your child, and could help you provide them with a valuable cash reserve to fall back on.
What's more - Open a Child Trust Fund before 25th June 2008 and you will receive 250 points for opening the Fund and a further 250 when you set up a direct debit. Find out more about this offer.
The Tesco Child Trust Fund
All eligible children born after the 1st September 2002 will be given a £250 voucher from the government to invest in a Child Trust Fund. That's why we've teamed with Morley Fund Management, one of the UK's largest Fund Managers to bring you the Tesco Child Trust Fund and ensure your child's investment is in safe hands.
Growth in the Child Trust Fund Account is free from income and capital gains tax making it one of the most efficient ways to save your child's future. The Tesco Child Trust Fund is a Stakeholder Account that invests in companies' shares but the account has to follow Government rules to help reduce risk.
When your child turns 18 they will be able to access their account.
It's quick and easy to open an account, so why not apply today?
Features summary
- It's an easy tax efficient way to save for your child's future
- Save from just £10 a month to make a real difference to your child's fund.
- Family and friends can also make payments into your child's fund - A maximum of £1,200 a year.
- Your child will receive a second payment of £250 from the Government at the age of seven.
Help your child's fund grow even more
Topping up your child's fund is an excellent way to help build up a really valuable sum for when they reach 18. Up to £1,200 can be added in your child's birthday year, but just adding £10 a month can make a real difference.
The table below shows you how your child's fund could grow over 18 years:
| Value of your child's voucher from the government | If you pay in (per month) | The final amount could be |
|---|---|---|
| £250 | £0 | £500 |
| £250 | £10 | £3,800 |
| £250 | £25 | £8,700 |
| £250 | £50 | £16,900 |
Please note that this table can only give you an idea of the final value. This is an equity-linked investment. There is no guarantee that the account will reach the value shown and the final value may be higher or lower.
Please also note that the figures are based on the £250 being invested as soon as we receive the funds from the Government and that it does not include any extra Government payments, such as the additional payment on your child's 7th birthday. The figures are based on the management fee of 1.5% and a growth rate of 6% a year after the deduction of charges.
You should also bear in mind that inflation will reduce the buying power of the money in the fund when it matures.
