Why choose Baby Bond® Child Trust Fund account?
Greater potential for long-term growth by
linking investement to company shares.
All investement growth and the payout at 18
are free from personal taxes.
Investment reflects a wide range of UK
company shares to spread risk. A built in feature to limit the risk
of losing value should share prices fall as your child’s 18th
birthday approaches.
Charges are capped at 1.5% of the CTF
account's value each year.
The government will make an additional
contribution to your child's CTF account at seven years old.
You could receive up to £40 of vouchers,
which can be spent in either Mothercare or Early Learning Centre
stores, if you apply online for your child's Baby Bond®. Terms
and conditions of voucher offer.
Not ready to apply?
Please remember that because Baby Bond®
investment is linked to shares, the value of the account could
fall as well as rise, and your child may get back less than has
been invested. No-one can access the money except your child, and
not until age 18.
The aim of Baby Bond® Child
Trust Fund account is to build up a tax-free lump sum for your
child when they reach 18. This can then be used for whatever they
choose - maybe to help fund further education, buy their first car
or to travel the world.
Investing your child's money with experts
Your child’s money will be invested in a fund that holds company
shares. The shares are selected by one of the UK's biggest
investment companies, Insight Investment. They make all the key
investment decisions about which shares to buy and sell.
Getting a great return on your investment
The Children’s Mutual, like the government, believes that shares
should produce better returns in the long-term than cash savings.
That’s why our Baby Bond® CTF account, which runs for 18
years, is based on investment in shares. However, past performance
is not a guide to the future and your child could get back less
than has been paid in.
Protecting your investment
Investing in individual shares carries more risk than spreading
investment over a wider range of shares. That’s why Baby Bond®
Child Trust Fund invests in a fund that aims to match the
performance of a broad range of UK company shares, rather than just
a few.
And, any money that you add to your child’s CTF account while
the price of 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.
The Children’s Mutual will gradually move the money in your
child’s Baby Bond® to lower risk investments (such as government
bonds and cash) from your child’s 13th birthday. This is called
lifestyling.
Tax efficient investment
Under current regulations all investment growth in your child’s
CTF account, as well as the lump sum payout at 18, are free from
personal taxes.
Low charges
Another benefit of the Stakeholder Baby Bond® Child Trust Fund
account is that there are no hidden charges. There’s just one
simple, fixed administration charge of 1.5% of the account’s value
each year, already allowed for in the price of shares in the
fund.
Up to £40 of vouchers
What’s more, if you
apply online now
we'll send you:
- £40 of vouchers if you also set up a
Direct Debit for more than £30 a
month when you apply
- £20 of vouchers if you also set up a
Direct Debit for more than £10 a
month when you apply
Vouchers can be spent in either Mothercare or Early Learning
Centre stores.
Terms and
Conditions
Your relationship with
us and information about Baby Bond® Child Trust Fund
PDF, 411KB (opens a new window)
How to get the most from your child’s Child
Trust Fund account