Trust Fund Calculator


This calculator allows you to estimate the final value of the CTF account when your child turns 18. Please remember that the calculator can only give you an idea of the final value. There is no guarantee that your child’s CTF account will reach the value shown by the calculator. The final value may be higher or lower. The final values are for three broad categories of investment. The calculator does not deal with the issue of investment risk, and is not investment advice. It is not a basis on which to reach investment decisions.


Savings accounts

This calculation is based on the following assumptions:
o A potential interest rate of 3.5%.
o The rate used is an assumed rate of return of 4.5%, reduced by an assumed 1% to allow for the cost of charges by providers.
o Providers will cover their costs in deciding how much interest to pay you.
o The interest rate will vary from provider to provider.
o The results are an estimate of the return you might expect from a savings account. But remember that on most savings


Stakeholder accounts

This calculation is based on the following assumptions:

 o Providers will decide how much money to move from shares to less volatile investments and how quickly. For this calculation only, we have assumed that the less volatile investments will be the same as in savings accounts. We have also assumed that investments will be moved in the proportions in the table below. These are artificial assumptions (and not a model of what will happen in practice). In particular there is no obligation on providers (or expectation) that they will follow these assumptions.

o The calculator assumes an interest rate of 3.5% on the savings part of the account. This is the same as the interest rate assumed for savings accounts in the calculator.




The interest takes account of a 1% charge by the provider as explained in the details under Savings Account

o The calculator only applies the Annual Management Charge which you have entered to the part of the account invested in shares (assumed to be the entire fund until age 13). Remember that management charges on stakeholder accounts can vary
but cannot be more than 1.5% a year. The calculator therefore limits the annual management charge that can be entered for a stakeholder account to between 0% and 1.5%. The Government rules also mean that no additional management or administration charges can be made.


Shares accounts

This calculation is based on the following assumptions:
o A range of potential growth rates. The ones used here are the Financial Services Authority's standard projection rates for Individual Savings Accounts (ISAs) and Child Trust Funds which are 5%, 7% and 9%.
o The Annual Management Charge which you have entered. On accounts that are not stakeholder accounts there is no set limit for the annual management charge and providers may charge you additional management and administration fees on top.
o This calculation is based on the assumption that the full value of the investment is invested in stocks and shares up until age 18. Remember the value of stocks and shares can go down as well as up.


Disclaimer

All information found within this section is from third party sources and all figures and information are found at The Child Trust Fund government website. Infomat will like to point out that the figures within this section area are predicted and you should consult your bank manager for more information.    more info...