What is the difference between the three types of Child Trust Fund account?
Stakeholder accounts Stakeholder accounts invest your child’s money in shares in companies. When those shares do well, the account will grow. The Government has made certain rules for these accounts to simplify them and reduce the cost and risk of investing for the longer term. Your child’s money is not put into just one company, as they could lose out if that company does badly. The money is invested in a number of companies to reduce the risk. Once your child is 13, money in the account starts to be moved from shares to investments that have less chance of reducing in value in the short term. Child Trust Fund (CTF) providers will look at how well the shares are performing to decide how much to move into more secure investments and how quickly. This means that although your child’s money may benefit less if the stock market is performing well, the effect of any short term losses is reduced as they approach their 18th birthday. All CTF providers must accept a minimum payment of £10 int
