Foresters Child Trust Fund is a good option for parents who are looking for a low-cost way to save for their child’s future.
What Is Foresters Child Trust Fund?
Foresters Child Trust Fund is a long-term savings account for children born between 1st September 2002 and 2nd January 2011. It was introduced by the government to help parents save for their child’s future.
The account opening fee is £0 and the annual charge is 1.5%, which is below the average for Child Trust Funds.
Note: Every child who was born during this time was automatically entitled to a £50 voucher from the government. Parents could then choose to open a CTF account with this voucher and add further savings to it.
The government also added a further £250 to the account if the child’s parents were receiving Child Benefit.
CTFs can be invested in a variety of ways, including stocks and shares, cash, and a mix of both. The investment options are chosen by the parent or guardian of the child.
The money in a CTF cannot be withdrawn until the child turns 18. However, there are a few exceptions to this rule, such as if the child is going to university or if they have a serious medical condition.
CTFs are a good way to save for a child’s future. The government bonus can help to boost the savings pot, and the tax-free status of the account means that you can grow your savings without having to worry about paying any tax on the interest or dividends.
However, it is important to remember that CTFs are a long-term investment. The value of the investments can go up or down, so it is important to choose an investment option that is appropriate for your child’s age and risk appetite.
Who Can Open A Foresters Child Trust Fund Account?
Just like Carpenters Trust Fund and NatWest child trust fund, Anyone can open a Foresters Child Trust Fund, as long as they are:
- A parent or guardian of a child born between 1st September 2002 and 2nd January 2011.
- A resident of the UK.
- Aged 16 or over.
If you are not a parent or guardian of the child, you can still open a Foresters Child Trust Fund if you have parental responsibility for the child.
Parental responsibility is the legal right to make decisions about a child’s upbringing.
To open a Foresters Child Trust Fund, you will need to provide the following information:
- The child’s name and date of birth.
- Your name and address.
- Your contact details.
- The amount of money you want to deposit.
- Your investment preferences.
You can open a Foresters Child Trust Fund online, over the phone, or by post.
Here are some additional things to keep in mind when opening a Foresters Child Trust Fund:
- You can only open one Child Trust Fund per child.
- The government will give a £50 voucher to every child born between 1st September 2002 and 2nd January 2011. You can use this voucher to open a Foresters Child Trust Fund.
- You can contribute up to £9,000 per year to a Child Trust Fund.
- You can withdraw money from your Child Trust Fund from the age of 18 for any reason.
Features Of Foresters Child Trust Fund?
Here are the features of Foresters Child Trust Fund:
- Account opening fee: £0
- Annual charge: 1.5%
- Interest rate: Variable
- Investment options: Stocks and shares, cash, and a mix of both
Withdrawals: You can withdraw money from your Child Trust Fund from the age of 18 for any reason. ( Review Kiwisaver Withdrawal ).
In addition to these features, Foresters Child Trust Fund also offers the following benefits:
- Well-established financial services provider: Foresters is a well-respected financial services provider with a long history of providing savings and investment products.
- Range of investment options: Foresters offers a range of investment options to suit different risk appetites. You can choose to invest your child’s savings in stocks and shares, cash, or a mix of both.
- Low annual charge: The annual charge for Foresters Child Trust Fund is 1.5%, which is below the average for Child Trust Funds.
- Withdrawals allowed from the age of 18: You can withdraw money from your Child Trust Fund from the age of 18 for any reason. This gives your child more flexibility with their savings. (FAQs; When Can I Access My Super ).
Overall, Foresters Child Trust Fund offers a range of investment options, a low annual charge, and withdrawals are allowed from the age of 18.
Drawbacks Of Opening A Foresters Child Trust Fund Account
Here are some of the drawbacks of opening a Foresters Child Trust Fund:
- Variable interest rate: The interest rate on Foresters Child Trust Funds is variable, so it could go down in the future. This means that your savings could earn less interest, which could impact the overall growth of your Child Trust Fund.
- You can only withdraw money from your Child Trust Fund from the age of 18: This means that you cannot access the money in your Child Trust Fund before your child turns 18, even if you need it for an emergency. This could be a problem if you have an unexpected expense that you need to cover.
- The annual charge is 1.5%: This is slightly higher than the average annual charge for Child Trust Funds. This means that you will pay more in fees over the lifetime of your Child Trust Fund, which will reduce the amount of money that your child eventually inherits.
In conclusion, Foresters Child Trust Fund is a good option for parents who are looking for a low-cost way to save for their child’s future.
The account opening fee is £0 and the annual charge is 1.5%, which is below the average for Child Trust Funds.
Foresters also offers a range of investment options to suit different risk appetites.
Please note that this is not financial advice. You should always do your own research before making any investment decisions.