The Child Trust Fund

The Child Trust Fund (CTF) is a government initiative aimed at ensuring that all children have a financial asset at the start of their adult life.

Eligibility

As long as your child is eligible for child benefit, is resident in the UK, and was born on or after 1st September 2002 they should qualify for a CTF account.

The Child Trust Fund voucher

When you apply for child benefit, H.M Revenue and Customs will arrange the following:

• £250 CTF voucher to open the account
• For children in families receiving full Child Tax Credit, a further £250 (paid straight into the CTF account)

Your child may also be eligible for an extra contribution of £250 at age 7.

Choosing an account

Once you've received the voucher, you'll need to open a CTF account with your chosen provider. There are various accounts available, from several providers.

The government will give you a year to invest your voucher. After that, they will automatically invest it for you. You can still transfer it to the provider of your choice, but the sooner you open the account the sooner the money can be invested!

Once the account has been opened

Once you've opened the account you or your family and friends will be able to add up to £1,200 a year for your child. The money will then remain in the CTF account until your child is 18, at which point only they will be able to access it, giving them a little extra to fund their future plans.

What types of Child Trust Fund account are available?