Child Trust Funds

Ensure your child gets a great start to adult life

Child Trust Funds

The Child Trust Fund (CTF) was set up by the government to help give children in the UK a financial headstart at 18. It’s an easy and worthwhile way you can help ensure your child gets a great start to adult life.

How it works

Since 1st September 2002, the government has given the parents of each newborn child in the UK a £250 Child Trust Fund voucher which can only be used to open and kick-start a Child Trust Fund account.

You’ll receive the voucher by post soon after you register for Child Benefit. (You can register for Child Benefit here.)

• You, your family and friends can top-up the fund by up to £1,200 a year in total.
• Only your child will have access to the fund, and only when they reach 18.
• Children in families on full Child Tax Credit will get an additional £250 once the account is open.

Why it's worth it

• A CTF is a great way of getting your child started with the saving habit.
• The government will make an additional contribution to your child’s CTF at seven years old, and is considering a third in the child's teenage years.
• All investment growth and the payout at 18 are free from personal tax.
• At 18, your child can use the money from their CTF account for any purpose. For example, they could use it to help pay for further education, buy a car, or travel the world. It’s up to them.

What’s more, choosing The Children’s Mutual for your child’s CTF account will mean that you can rest assured knowing that your child’s money is in safe hands. We look after over 650,000 Child Trust Fund accounts and have over 125 years experience of helping people provide for their families.