Cash CTFs hold onto your cash and pay interest on the total amount. A stocks & shares CTF invests the money in different funds and company shares on the stock market with the aim of gaining better returns when compared to cash products.
Our CTF invests in stocks and shares. Stocks and shares are usually considered a good option if investing over the longer term as this helps even out fluctuations in the stock market and provides good growth potential. However, this comes with a degree of risk. The value of stocks and shares can go down as well as up. Whilst this is normal for stocks and shares it does mean that your child could get back less than is paid in.