Overview

 

The Child Trust Fund (CTF) can be one of the many ways to help you save for your children's future.  Below is a summary of how CTFs work. For a more detailed analysis, go to the Detailed Explanation Child Trust Fund page.

Note: Babies born from January 2011 will no longer be entitled to a Child Trust Fund voucher. However, existing CTFs can continue to be topped-up as normal until your child is 18. The Government has also announced a new tax-free children's savings product to replace the CTF, the Junior ISA, to be launched by autumn 2011. To find out more and compare different Junior ISA providers, click here.   

• the Child Trust Fund (CTF) is a long-term savings and investment account where your child (and no-one else) can withdraw the money when they turn 18
• neither you nor your children will pay tax on income and gains in the account
• free £250 voucher or £50 voucher (from August 2010 - January 2011) to start each children’s account 
• a maximum of £1,200 each year can be saved in the account by you, your family or friends 
• money cannot be taken out of the CTF once it has been put in – once your children are 18 they will be able to decide how to use the money 
• your children can start to make decisions about how the money is managed when they are 16 
• not just one type of CTF account – you choose the type of account you want for your children 
• it will not affect any benefits or Tax Credits you receive
• learning about how to make the most of your money is a key part of the CTF

Find out how to calculate the Child Trust Fund with this Calculator.  This great tool allows you to estimate the final value of the Child Trust Fund (CTF) account when the child turns 18. 

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Download

• Child Trust Funds Introduction
• Child Trust Funds Toolkit
• Child Trust Funds
• R85 (tax free application form)

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MyEggNest's Recommendations Alternatives to CTFs - Tax-Exempt Savings Plans Did you know there are alternatives to the CTF that offer the same tax-free savings? Tax-Exempt Savings Plans (TESPs) can help you build up a lump sum for your child through small, regular payments. Your fund grows free from any income or capital gains tax, and can be used to save for children of all ages. Click here for more information about TESPs, and specific plans offered by friendly societies.

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