What is a Child Trust Fund?
The Child Trust Fund (CTF) is a Government initiative, designed to encourage both parents and children to save or invest tax-efficiently. It’s open to children born on or after 1 September 2002 and it aims to ensure that children have some money behind them to help make the transition into adult life and when they reach 18. Any monies paid into a CTF are locked in until your child reaches 18. To give your child’s fund a head start, the Government will give at least £250 (or up to £500 if you’re in receipt of full Child Tax Credit), with a further £250 on your child’s seventh birthday (or up to £500 if you’re in receipt of full Child Tax Credit). You, your family or friends can make regular one off deposits up to a total of £1,200 per year (from birthday to birthday) right up until the child’s 18th birthday. Types of account There are two types of Child Trust Fund that you can invest your child’s money into; a cash fund where the money is held in a traditional bank/building society acco
You have a new arrival in the family. A wonderful new addition, something that will enrich your life but there is so much to learn and you need to learn it quickly. One of the last things on your mind is the fund for university, or their first car, or their wedding but the Child Trust Fund provides a start for all of these outcomes. The Child Trust Fund is a long-term saving account that the child can withdraw the money from once they become an adult at the age of 18. The government in the UK provides you with a child trust fund voucher or CTF with the value of £250. If your household income is less that £15,575 you will also receive a top up of on top the initial £250. The top up is linked to the amount of Child Tax Credit that you receive. You need to make sure you make the claim your child tax credit within the first three months of the babies birth as the government will only back date the payments for three months. You don’t want to miss out. To qualify for a Child Trust Fund your
The Child Trust Fund is a long term savings investment account for children. The Government has introduced the Child Trust Fund to ensure your child has savings at the age of 18 and: to help your child get into the habit of saving teach your child about the benefits of saving help your child understand personal finance see website for more information www.childtrustfund.gov.
A Child Trust Fund (or CTF) is a savings and investment account available to children born on or after 1st September 2002 who qualify for child benefit. Child Trust Funds were introduced by the government. Each eligible child receives a voucher for £250. If you are eligible for full Child Tax Credit your child will receive a further government payment into their Child Trust Fund of £250. The first Child Trust Funds were opened in April 2005. All children will receive another government contribution of at least £250 round about their seventh birthday.
A Child Trust Fund (CTF) is a long-term savings and investment account for children in the United Kingdom. The UK Government introduced the Child Trust Fund with the aim of ensuring every child has savings at the age of 18, helping children get into the habit of saving whilst teaching them the benefits of saving and helping them understand personal finance. Child Trust Funds can be a mine field to navigate though. Here are ten simple things to know about Child Trust Funds before taking one out. 1. While similar to ISAs, child trust funds are designed to help children in the long term. They are a government backed, tax free saving scheme. 2. Parents only receive their child’s CTF voucher once he or she has been registered for Child Benefit. As such, a birth certificate is required. Remember, Child Benefit is available to every child, regardless of parental income. 3. Once you have the voucher, time is money. It makes sense to begin taking advantage if a Child Trust Fund as early as poss
