Here you'll find some questions and answers on the Child Trust Fund (CTF). Just click on the question to reveal the answer.
Child Trust Funds and Junior ISAs will remain separate types of accounts and it’s not possible to transfer CTFs into Junior ISAs or vice versa.
Existing Child Trust Funds will continue to run as normal. This means that:
From April 2013, this amount will be updated each year in line with the Consumer Prices Index (CPI) and will continue to be aligned with the Junior ISA limit.
Great news, this means that your child will benefit from having a Child Trust Fund. You need to place your voucher with a provider to open a CTF before the expiry date on the voucher.
Take a look at our Child Trust Fund accounts.
No, Child Trust Funds and Junior ISAs will remain separate types of accounts and it’s not possible to transfer CTFs into Junior ISAs or vice versa.
Not at all, you can apply for a replacement voucher at www.direct.gov.uk.
You will need to make sure that you place the voucher with a provider before its expiry date.
Unfortunately the Government has stopped age 7 payments for all children that turn 7 after 1 August 2010.
You can cancel or change your Direct Debit at any time. Don’t forget that your child is one of the fortunate children of this generation to have a Child Trust Fund and you can continue to make use of this tax efficient savings account until your child reaches 18, if you wish to.
If you wish to cancel your Direct Debit please give our Options Team a call on 0845 077 1899.
As your baby will be born after 2 January 2011 they won’t be entitled to a Child Trust Fund. But, the good news is that you’ll be able to apply for a Junior ISA for them. Find out more about Junior ISAs.
Children born after 2 January 2011 aren’t entitled to a Child Trust Fund.
The good news is that you’ll be able to apply for a Junior ISA for them. Find out more about Junior ISAs.
If you have a voucher then your child is entitled to a CTF account.
If you want a say in where their account is opened, then you should place it with a provider before the expiry date shown on the voucher. Your child is entitled to all the same benefits of CTFs as before.Take a look at our Child Trust Fund accounts.
If you choose not to place the voucher the Government will open a CTF account for your child once the voucher has expired.
If it’s your tax credit award for 2009/10, whether or not the award is finalised yet, your child will still get the additional payment if you qualify.
Yes. The additional payments for children who are entitled to a CTF (those children born before 3 January 2011), and whose family qualifies in tax year 2010/11, will still be paid. This will be the last year for which Government make these payments.
Yes – Junior ISAs will be available for all children under 18 who don’t have a CTF. Find out more about Junior ISAs.
You can register online or by filling in a Child Benefit claim form which you can pick up from your local Jobcentre Plus or main Post Office® branch.
Yes - provided your child was born on or after 1 September 2002 and before 3 January 2011, is now resident in the UK and you’re claiming Child Benefit for them.
Don't worry - you can still apply for one of our Child Trust Funds.
If your child's CTF voucher has already expired the Government will open a stakeholder account for them – they’ll send you a letter to let you know who the provider is. If you then want to transfer your child's CTF account to The Children's Mutual, it's quick and easy to do so. Find out how to transfer your child’s CTF account to us.
This is quick and easy to do – what’s more there’s no charge for making the switch. Find out how to transfer your child’s CTF account to us.
If you’ve yet to receive a Child Trust Fund pack from us, look out for one arriving in the post very shortly. If you have any other queries then please contact us.
No - a CTF account belongs to your child and won’t affect your right to any benefits that you already receive.
This won't be affected by your child's eligibility for a CTF account. Of course, if an existing plan requires that regular payments have to be made, you’ll need to continue with these.
If the move is temporary there’s no change. However, if your family cease to be UK residents your child won’t receive any further Government contributions – but you and your family and friends can continue to pay money in (up to the current yearly maximum of £3,600).
Crown servants living abroad are treated as though they live in the UK for tax purposes, so their eligible children are entitled to CTF accounts and to receive Government contributions.
No - the Child Trust Fund voucher must be used to set up a Child Trust Fund account.
If you haven’t opened an account within the period above then the Government will open a stakeholder account for your child. They’ll tell you which provider holds the account, and you’ll receive full details from the provider soon after.
However, by opening a CTF account yourself, you can choose the provider and type of account you feel most comfortable with, right from the start.
And, if you open a CTF account before the voucher expires, your child won't lose out on potential investment growth while it’s sitting at home unused.
Simply apply for a replacement voucher at www.direct.gov.uk.
This is the person who looks after the account for the child until they reach 16. The Registered Contact must be someone who has parental responsibility for the child – for example a parent, legal guardian or foster parent.
From age 16, only the child can be the Registered Contact.
No - the money can’t be touched by anyone, including your child until they’re 18. So anyone paying into a Child Trust Fund account needs to be aware that they can’t change their mind later and ask for their money back.
The value of the fund is paid to the child. They can use the money how they like – for example to help with further education, training or help buy a car or first home. If your child doesn’t need the money immediately, they’ll be able to roll it over into a tax-efficient ISA (Individual Savings Account) at that time.
Our Baby Bond Child Trust Fund invests in a shares based fund until your child is 13. This is to take advantage of the potential for greater growth on your child’s money that investing in this way offers over cash deposits. What’s more we invest in a way that aims to help secure your child’s money – by investing in a fund that aims to match the performance of the widest range of UK company shares, rather than just a few. And, when your child reaches 13, to help protect the value of their account at that time, we gradually move the money to more stable investments - such as government bonds and cash.
Because we believe that shares will produce better returns in the long-term than investing in cash deposits – therefore making investment linked to shares more suitable, and more likely to produce a better return, for a long-term investment like the Child Trust Fund. Economic history over many years suggests this will be the case, but please remember that past performance is not a guide to the future and your child could get back less than has been paid in.
Any money that you add to your child’s CTF account while the price of company shares is low will be able to buy more shares in the fund – meaning that the account will have a better potential for growth should share prices start to rise. So it could actually work out better for your child if share prices are lower during the early years of their CTF.
This is quick and easy to do – what’s more there’s no charge for making the switch. Find out how to transfer your child’s CTF account.
Currently each Child Trust Fund account can have up to £3,600 every birthday year added in total, not including any Government contributions - and all growth in the account will be tax-free.
Yes - any friend or family member can contribute to your child's account. Currently up to £3,600 every birthday year may be added in total - and all growth in the account will be tax-free.
What's more, a Child Trust Fund could be a great way to promote a lifetime savings habit in your child. When they’re old enough, they can even add to their own account from money they’re given as gifts, or that they might earn in part-time work.
There are a variety of ways to put money into your child’s CTF account – online, by phone or post. For example anyone can set up a Direct Debit or make a one-off payment online. Other ways to put money into your child’s CTF.
The minimum payment is £10 (except for Baby Bond® Choice Child Trust Fund accounts, where the minimum is £50 a month for regular payments, or £250 for lump sums).
Currently the maximum for all CTF accounts is £3,600 a year (birthday to birthday).
There's no limit to the number of debit card payments you or your family and friends can make. But the current total amount that can be paid in to the account each birthday year between you is £3,600.
We accept payments for the following cards: MasterCard Maestro, Visa Debit and Visa Electron.
No, we don't accept credit cards for payments into CTF accounts.
A debit card payment will be debited from your account within 2 to 3 working days.
Provided your payment is authorised, a confirmation email will be sent to the email address that you've entered. Once the payment is credited to the account we'll send you written confirmation of this payment within 5 working days.
No - any money paid in to a Child Trust Fund account is a gift to the child and can't be returned. Only your child can have the money - but not until they're 18.
Within the debit card and Direct Debit online forms you're given the chance to check your details before submitting the form. Please do ensure that you enter and check your details carefully.
Once you've submitted the form any money paid into the CTF account is a gift to the child and can't be returned, unless the amount takes the total contributions for the birthday year above the £3,600 limit - in this case we'll return the excess to you.
We're sorry we are unable to help you with this. You'll need to contact your bank to find out the reason for the rejection.
You can either call us on 0845 077 1899 or print out our Change of Address form:
Change of Address form PDF, 302KB (opens a new window)
Please fill in the new details it and post it to us at:
Freepost RLRZ-ZAZZ-GACY The Children's Mutual PO Box 1137 Cheltenham GL50 9QS
No stamp is required.
No – we believe that as shares have historically outperformed cash deposits over the longer term, an investment linked either in part or full to shares offers a more suitable option for a long-term investment like the Child Trust Fund.
However, you should remember that past performance is not a guide to the future.
We’ll send a yearly statement – at around the time of your child's birthday – showing:
This will help you to keep track of any payments made and check on the account’s progress.
You can download the Baby Bond® Choice Child Trust Fund switch form below to complete and send us the details of the switch you wish to make. If you have any questions simply contact us.
Baby Bond® Choice Child Trust Fund switch form PDF, 54KB (opens a new window)
If you have any queries or would like more information then please contact us.