About the Child Trust Fund

The Child Trust Fund (CTF) is a long-term savings and investment account for children. The Government has introduced the CTF to:

• ensure your child has savings at the age of 18
• help your child get into the habit of saving
• teach your child about the benefits of saving and
• help your child understand personal finance.

Key facts about the Child Trust Fund

• 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 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, once a CTC award has been finalised (A CTC award must be in place for the time at which child benefit is awarded to get the additional payment. As CTC claims can only be backdated 3 months make sure you don't leave it too late!)
  
  For previous years' CTC thresholds use this link
  
• 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.