Child Trust Fund FAQs

Here you'll find some questions and answers on the Child Trust Fund (CTF). Just click on the question to reveal the answer.

Latest information on the Child Trust Fund

Please see the document below which provides information and FAQs on the latest changes to the Child Trust Fund from the HMRC.

There's also a section below to help answer the questions you may have following the Governement's plans to remove Child Trust Funds.

Government announcement on Child Trust Funds
PDF, 25KB (opens a new window)

Latest information questions

I’ve got a CTF account for my child with The Children’s Mutual – what will happen?

There’s no need to worry. Your child’s CTF will continue to run as normal. This means that:

- It will continue to benefit from tax efficient investment.
- Up to £1200 a year can still be contributed.
- The CTF will continue to run until your child’s 18th birthday.

I’ve got a CTF voucher – what should I do with it?

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.

See Why choose us for reasons to choose The Children’s Mutual.

I’ve lost my CTF voucher – does this mean my child will lose out?

Not at all, you can apply for a replacement voucher at www.childtrustfund.gov.uk.

You will need to make sure that you place the voucher with a provider before its expiry date.

What will happen to the Age 7 payments?

If your child is due to turn 7 before 1 August this year they will still get the additional payment.

Unfortunately after this date no other Government payments will be made to children turning 7.

I’m thinking about cancelling my Direct Debit – what should I do?

You can cancel or change your Direct Debit at any time. However, the Government announcement doesn’t mean you automatically have to do this.

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.

I’m pregnant – will my baby be entitled to a Child Trust Fund?

Congratulations! If your baby is born before 2 August this year and you claim Child Benefit for them by 1 November 2010, they'll receive a £250 CTF voucher.

If your baby is born any time from 2 August to 31 December this year they will receive a £50 CTF voucher.

Unfortunately, if your baby is born after 31 December 2010 they won’t be entitled to a Child Trust Fund under the new Government proposals.

I’ve already got a CTF for my child but we’re planning on having more children. Will they be able to have one?

Children born after 31 December 2010 won’t be entitled to a Child Trust Fund.

However, at The Children’s Mutual we’re working to create something similar to enable parents to help all their children when they enter adulthood.

I’ve got a voucher but I don’t know whether I should do anything with it if the CTFs being removed.

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. Your child is entitled to all the same benefits of CTFs as before.

If you choose not to place the voucher the Government will open a CTF account for your child once the voucher has expired .

I think I’m entitled to an additional payment but my tax credit award hasn’t been finalised yet – what will happen?

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.

I’ve opened a CTF account but I haven’t yet got my additional payment (the £250 for children in lower income families) – will I still get it?

Yes. The additional payments for children who became entitled to a CTF account before August this year, and whose family qualifies, will still be paid.

My child is disabled, will they still get a Government payment?

If your child has a CTF account, and is entitled to Disability Living Allowance at any time in the 2010-11 tax year, then they will be entitled to an additional payment into their CTF account, and this will be paid.

From tax year 2011-12 onwards, the Government intends that these payments will stop.

General questions

How do I register for Child Benefit?

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.

I have moved to the UK from within the European Economic Area - will my child qualify for the Child Trust Fund?

Yes - provided your child was born on or after 1 September 2002 and before 1 January 2011, is now resident in the UK and you’re claiming Child Benefit for them.

My child's Child Trust Fund (CTF) voucher is about to expire, what can I do?

Don't worry - you can still apply for one of Child Trust Funds online or by telephone.

My child's Child Trust Fund (CTF) voucher has expired, what can I do?

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.

The Government has opened a Child Trust Fund (CTF) account for my child with another provider and I'd like to transfer it to The Children's Mutual - what should I do?

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.

The Government has opened my child's Child Trust Fund (CTF) account with The Children's Mutual - what happens next?

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.

I’m currently expecting a baby – when will I receive my child’s CTF voucher?

If your baby is born before 1 January 2011, the Government will post you your child’s CTF voucher soon after you’ve registered for Child Benefit for your baby.

In the meantime why not sign up to receive more information from The Children’s Mutual and get your free ‘Essential Guide to Money for parents’.

Will the Child Trust Fund (CTF) affect any benefits I'm receiving?

No - a CTF account belongs to your child and won’t affect your right to any benefits that you already receive.

What if I already have a tax-free savings plan for my child?

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.

What happens if a child with a CTF moves abroad?

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 yearly maximum of £1,200).

What about Crown employees?

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.

Can my child's CTF voucher be cashed in?

No - the Child Trust Fund voucher must be used to set up a Child Trust Fund account.

How long do I have to open a CTF account?

You’ve 12 months from the date that the voucher is issued by the Government.

If you haven’t opened an account by 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. Compare Child Trust Fund accounts.

And, if you open a CTF account before the voucher expires, your child won't lose out on potential investment growth in the first year.

What if my child's CTF voucher gets lost?

Simply contact www.childtrustfund.gov.uk and they will issue a replacement.

What's a 'Registered Contact'?

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.

Can anyone take the money out before my child is 18?

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.

What happens to the money at 18?

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.

Child Trust Fund questions

How is my child's money invested?

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.

Why do we invest it that way?

Because we believe, like the government, 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.

What happens to any contributions into my child’s CTF when share prices are low?

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.

I’d like to transfer my child’s Child Trust Fund account from another provider to one of The Children’s Mutual Child Trust Fund accounts – how do I do this?

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.

How much money can be added to my child’s CTF account?

Each Child Trust Fund account can have up to £1,200 every birthday year added in total, not including any government contributions - and all growth in the account will be tax-free.

Can family and friends contribute to the CTF account?

Yes - any friend or family member can contribute to your child's account. Up to £1,200 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.

How can I – and my friends and family - put money into my child’s CTF account?

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.

What are the minimum and maximum amounts that I can pay into a Child Trust Fund account?

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).

The maximum for all CTF accounts is £1,200 a year (birthday to birthday).

Is there a limit to the amount of debit card payments I - or my family and friends - can make in any one year?

There's no limit to the number of debit card payments you or your family and friends can make. But the total amount that can be paid in to the account each birthday year between you is £1,200.

I’d like to make a debit card payment into my child’s CTF online - which cards are accepted?

We accept payments for the following cards: MasterCard Maestro, Visa Debit, Visa Electron and Solo.

Can I make payments by credit card?

No, we don't accept credit cards for payments into CTF accounts.

If I make a debit card payment when will the money be deducted from my bank account?

A debit card payment will be debited from your account within 2 to 3 working days.

If I make a payment online how and when will I receive confirmation of this?

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.

What happens if I change my mind about a payment made into a Child Trust Fund account – can I get my money back?

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.

What happens if I enter the wrong payment details online and I've paid more than I intended to - can I claim back the overpayment?

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 £1,200 limit - in this case we'll return the excess to you.

I've tried to enter my bank details on the website, but these have been rejected, can you let me know why? There are sufficient funds in the account.

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.

What do I need to do if my contact details, or those for my child, have changed?

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 2067
Gloucester
GL4 3YU

No stamp is required.

Do you offer a cash deposit (or what’s known as a savings account) Child Trust Fund?

No – we believe, like the government, 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.

If I qualify for vouchers, when will I receive these?

If you - or your friends or family - qualify for vouchers, these will be sent within 28 days of us receiving the first Direct Debit payment.

How will I know how my child’s Child Trust Fund account is performing?

We’ll send a yearly statement – at around the time of your child's birthday – showing:

  • The value of your child’s CTF account at the start of the current year
  • Any Government contributions received during the year
  • Contributions from family and friends received during the year
  • The value of the account at the end of the year, after the charges have been taken.

This will help you to keep track of any payments made and check on the account’s progress.

I’ve opened your shares-based (non-stakeholder) Baby Bond® Choice Child Trust Fund for my child – if I want to, how do I switch the funds it’s invested in?

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)

What should I do if have any queries?

If you have any queries or would like more information then please contact us.