Child Trust Fund
The Child Trust Fund is a new initiative set up by the Government to encourage people to save on behalf of their children.
Key facts about the Child Trust Fund:
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Its a long-term savings and investment account for your child. The money can only be used by them when they reach 18. No one else has access to it.
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Neither you or your child has to pay any tax on income and gains in the account
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Each child gets a £250 voucher to start their account
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You will receive an extra payment if you are a child in a family receiving Child Tax Credit (CTC), with a household income that is below the CTC limit.
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You can save up to £1200 each year. Parents, family or friends can pay money into the account.
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Once money is paid into the CTF it can't be taken out. When your child reaches 18 they will be able to decide how to use their money
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When they are 16 children can begin to make decisions about how the money is managed
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When your child reaches the age of 7 the Government will make a further contribution. However, the amount has not been decided yet
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There are many types of CTF account and you can choose the type of account you want for your child
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The CTF will not affect any other benefits or Tax Credits you may currently receive
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Its important to know how to use your money with a CTF
Find Some Help
To discover other ways to save on behalf of your children, and to find companies that can help you set up a child trust fund, use the links below: