Frequently Asked Questions

1. What is the Child Trust Fund (CTF)?
2. Can I open a CTF account by phone, post or online?
3. Do I need a bank account?
4. My child qualifies for a CTF account but I haven't received a voucher. What can I do?
5. I've lost my voucher, can I get a replacement?
6. Can I open a CTF account for my other children who were born before September 2002?
7. How much can I put in each year?
8. Who can contribute?
9. Do I have to pay tax on the money in a CTF account?
10. Can I take out the money I have put in if I need it?

What is the Child Trust Fund (CTF)?
The Government has introduced the Child Trust Fund to help you save for your child's future.

The CTF is a type of long-term savings and investment account for children born on or after 1st September 2002, who qualify for Child Benefit.

The Government will issue a £250 voucher to you, as long as you qualify, to kick-start your child's CTF account.

There are three main types of CTF account:

• A stakeholder account
• A shares account (non-stakeholder)
• A savings account

Can I open a CTF account by phone, post or online?
How you open the account will depend on the CTF provider. But you will need to send them the voucher, as without it the account cannot be opened.

Do I need a bank account?

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No but some providers may ask for ID when you fill in the application form. Please check with the CTF provider you choose.

My child qualifies for a CTF account but I haven't received a voucher. What can I do?
You should have received a voucher automatically after you started receiving Child Benefit. To get a replacement voucher sent out simply call our helpline on 0845 302 1470.

I've lost my voucher, can I get a replacement?
Yes, all you need to do is contact the Child Trust Fund helpline on 0845 302 1470 and another one will be issued.

Can I open a CTF account for my other children who were born before September 2002?
CTF accounts can only be opened for children born on or after 1st September 2002. But there are plenty of other savings and investment accounts for children. More information can be found on the Child Trust Fund website.

How much can I put in each year?
The maximum that can be put into the account each year is £1,200. The Government payments do not count towards this limit.

Who can contribute?
Anyone can contribute. Grandparents, other family members, friends and in time your child can put money into the account.

Do I have to pay tax on the money in a CTF account?
No, neither you nor your child will pay tax on any interest or gains made on the money in a CTF account.

Can I take out the money I have put in if I need it?
No, the money in the CTF account belongs to your child. Only they can withdraw money from the account. But it cannot be taken out until they turn 18. At 18 they can decide how best to use their money.

Source: childtrustfund.gov.uk

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