Child Trust Fund benefits

The initial free Government voucher is certainly a great start, but even with the proposed additional free £250 voucher due to be provided on your child’s seventh birthday, in 18 years’ time the £500 invested might only have grown to around £1,000*. With regular additional amounts invested every month or occasional one-off payments throughout the 18-year account period, you could make a really big difference. But how much should you consider saving? The figures below may be a useful guide.

• £4,500* from around £10 per month – this could help towards travels around the globe.
• £8,000* from around £20 per month - this could help finance your child’s first car.
• £18,500* from around £50 per month – this might help towards your child’s first home.

*The figures shown allow for a £250 government payment at outset and then again at age seven. They assume that investments grow at 6.75% per year over the full 18-year term, with an annual charge of 1.5% (the calculations are not exact). These figures are illustrative, not guaranteed, and their future buying power would be affected by inflation. This account invests in shares so its value can fall as well as rise and your child may receive back less than was paid in.

Something extra from Sainsbury's

When you open a Child Trust Fund account with Sainsbury's Bank, there's a £20 Sainsbury's Gift Voucher to enjoy when you also take out Sainsbury's Bank Life Insurance (provided by
Legal & General).

Sainsbury's Bank life insurance is provided in association with
Legal & General Assurance Society Ltd. Registered in England 166055. Registered Office: Temple Court, 11 Queen Victoria Street, London EC4N 4TP until 30 September 2007. With effect from 1 October 2007 our registered office will be: One Coleman Street, London EC2R 5AA.

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