Childrens Trust Funds

Points to remember:

• 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 child will pay tax on income and gains in the account
• £250 voucher to start each child’s account
• children in families receiving Child Tax Credit (CTC), with a household income not greater than the CTC threshold of £15,575 for 2008/09 will receive an extra payment a maximum of £1,200 each year can be saved in the account by parents, family or friends
• money cannot be taken out of the Child Trust Fund (CTF) once it has been put in – once your child is 18 they will be able to decide how to use the money
• children can start to make decisions about how the money is managed when they are 16
• the Government will make a further contribution when your child is seven - all eligible children will receive a further payment of £250 into their CTF account at age 7, with children in lower income families receiving an additional £250. These payments will be paid around the child's 7th birthday direct into their account  
• not just one type of CTF account – you choose the type of account you want for your child
• at any time you can move the account to a different provider or change the type of account
• it will not affect any benefits or Tax Credits you receive.