Baby Bonds - An Introduction
An introduction to child trust funds, or baby bonds, which are a way of starting to save for your child's or grandchild's future
What can the money be used for?
Deposits into the account up to £1200 a year will attract interest, tax free, until the child in question reaches the age of 18. Funds cannot be withdrawn during this time.
Once the account has matured, there are no restrictions on what the money can be used for. Suggestions include paying for higher education, or a deposit for a house, but there is nothing in law to say what the accrued cash can be spent on.
Is it worthwhile?
Some politicians have condemned baby bonds as an 'expensive gimmick', but that's politics for you. If you have a new baby, it only makes sense to take everything that is offered - 18 years down the line, when you're met with university bills or the need for a house deposit, every little could help.
Where can I find out more?
The Child Trust Fund from Family Investments is an example of the kind of account you can pay your vouchers into, and their site includes more information to chew over.
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