Compare Child Trust Funds to make sure you choose the right one

Overwhelmed by the amount of Child Trust Fund accounts on offer? There’s a lot of choice out there, but it’s important to compare the Child Trust Funds currently available to make sure that you pick the one that’s right both for you and your child.

You can view a full list of Child Trust Fund providers by visiting the Government website at www.childtrustfund.gov.uk. Although the site does not offer a resource to directly compare Child Trust Funds, it should help give you a clearer idea of the types of funds that are available.

If you do not invest your CTF voucher within 12 months, the Government will automatically invest in a Stakeholder Child Trust Fund account with a company like Family Investments.

This doesn’t mean that a Stakeholder account is suitable for everyone or that returns are guaranteed, though. So you should check how different accounts compare. The Child Trust Fund is an 18 year investment, so you want to make sure you’ve made the right choice (although you can transfer your account to another provider at any time).

You should note that any money paid in to the account belongs to the child. Only they will be able to access it and only when they are 18. Because the account is linked to the stockmarket, its value can fall as well as rise and your child could receive back less than was paid in.

Why not start off by finding out more about the Stakeholder Child Trust Fund provided by Family Investments