Savings

Stakeholder CTF Account

In order to provide the option of a Stakeholder Child Trust Fund Account, the Yorkshire has chosen to introduce customers to engage Mutual Assurance. engage Mutual Assurance is a trading name of Homeowners Friendly Society Limited, and its wholly owned subsidiary engage Mutual Funds Limited. The equity-based stakeholder account is offered through engage Mutual Funds Limited.

The Stakeholder Account is a stock market-based investment, and offers the potential for a higher return than the Cash Savings Account. Consequently, it carries a higher risk than the Cash Savings Account. The risk is spread across a mix of investments, and gradually, from the age of 13, the fund is switched across to a lower-risk fund. However, it is important to note that the value of the child’s investment may go down as well as up and the child could get back less than has been paid in.

How the child's money is invested

With engage Stakeholder Child Trust Fund Account a lifestyled investment approach is taken. This means the investment takes advantage of the long-term growth potential of the stock market in the child’s early years. Then, as they get older, the money that may have built up will be moved to a lower-risk fund.

However, please be aware that the value of the child’s investment may go down as well as up and they may not get back all that has been paid in.

Key benefits

  • No hidden charges - one simple management charge of 1.5% per annum.
  • The growth potential of a stock market based investment.
  • Parents, family members, friends and even the child can add a combined total of £1,200 to the account each account year.
  • It's quick and easy to apply online - then save by direct debit, standing order, cheque or direct credit.
  • Add to the account as and when it suits you, by phone or post.
  • Growth in the fund is tax-free and there is no capital gains tax to pay.
  • Minimum subscription £5.

Risks

  • The value of the investment may go down as well as up. The child may not get back all that has been invested.
  • Satisfying the minimum Child Trust Fund standards does not mean that this investment is suitable for the child, nor that there are any guarantees regarding performance.
  • The child's cash lump sum payout at age 18 will depend on investment performance and cannot be guaranteed.
  • Once the money is paid into the Child Trust Fund it is locked in. It can only be accessed by the child, and not before they reach age 18.

Links

 

engage Mutual Assurance is a trading name of engage Mutual Funds Limited, registered number 3224780. Authorised and regulated by the Financial Services Authority (FSA). Engage Mutual Funds Limited FSA register number is 181487. You can check this on the FSA's register by visiting the FSA's website or by contacting the FSA on 0845 606 1234.

engage Futual Funds ICVC is a limited company with variable capital, registered in England no. IC00044.


Yorkshire Building Society is one of the largest building societies in the UK. We offer a range of financial products and services including: savings & investment accounts, insurance products, credit cards, loans, mortgages and more.

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Yorkshire Building Society is authorised and regulated by the Financial Services Authority (FSA).