Glossary

Child Benefit
A tax-free monthly payment from the Government to anyone bringing up a child up to age 16 (19 if still in full-time education). It’s not affected by income or savings so most people who are bringing up a child or young person qualify for it. Learn more about Child Benefit.

Children's ISAs
See Junior ISAs.

CTF
Child Trust Fund.


Child Trust Fund
A Government scheme to support long-term savings and investment for children. Children born before 1 August 2010 received a £250 CTF voucher from the Government. Children born any time from 1 August to 31 December 2010 receive a £50 CTF voucher. The CTF voucher must be used to open a Child Trust Fund account. Children born after 31 December 2010 are not entitled to a Child Trust Fund. 


Child Trust Fund voucher
The Child Trust Fund voucher is issued by HMRC to a person with parental responsibility for a child (usually the parent who registers for Child Benefit). It is used to open a Child Trust Fund (CTF) account on behalf of the child, whose name is on the voucher. Once the Child Trust Fund account is open it can receive the Government's initial contribution to get it started.


Direct Debit
An instruction from a customer to their bank or building society authorising the regular collection of money from their account.


Government bonds
Governments sell bonds to raise money - a bond is, in effect, a loan from the person buying the bond to the Government. UK Government bonds are called gilts (short for gilt-edged securities).


FSA
Financial Services Authority.


Financial Services Authority
The statutory regulator of the UK financial services industry.


Financial Services Compensation Scheme
The UK's statutory compensation scheme for the financial services industry. It can pay out to customers of an authorised firm should it fail.


Fixed interest securities
Securities such as bonds and gilts which pay interest at a rate fixed in advance.


FTSE
A joint venture between the Financial Times (F-T) and London Stock Exchange (S-E) that produces lists of UK company share prices. The lists show performance of different companies in different industry sectors.


FTSE 100 Index
Includes the 100 most highly capitalized/blue chip companies listed on the London Stock Exchange.


FTSE Global Islamic Index
Tracks the performance of leading publicly traded companies whose activities are consistent with Islamic Shariah law.


Fund
An investment vehicle that pools together investors' money, so enabling larger and more efficient investments.


HMRC
HM Revenue & Customs.


Junior ISA
Junior ISAs are a new tax-efficient savings account for children who missed out on a Child Trust Fund account.


Key Features
A document describing the essential features of a financial product, designed to allow a consumer to make an informed decision about whether or not to buy or invest.


Lifestyling
The gradual switching of investment away from more volatile assets (such as company shares) towards more stable assets (such as government bonds and cash). All stakeholder Child Trust Fund accounts must be capable of lifestyling.


Non-Stakeholder Child Trust Fund account
A Child Trust Fund account that does not satisfy the government's specific requirements for a Stakeholder account (see "Stakeholder Child Trust Fund account"). These accounts can offer access to a wider range of investment options. 


Registered Contact
The person who has responsibility for the child's Child Trust Fund account until they reach the age of 16. This person must have parental responsibility for the child. From 16 only the child themselves can be the Registered Contact.


Shariah
The body of Islamic law.


Shariah Child Trust Fund account
A Child Trust Fund account that invests in full compliance with Islamic law.


Stakeholder Child Trust Fund account
Both our Baby Bond® and Shariah Baby Bond® are stakeholder Child Trust Fund accounts. Stakeholder Child Trust Fund (CTF) accounts have to include certain features set by the government. They’re designed to make them suitable for a long-term investment for a child - especially for families who are new (or fairly new) - to investment products. Features of stakeholder Child Trust Fund accounts.


With-profits
A particular type of pooled investment offered by some life insurance firms. A typical with-profits fund invests in a wide range of assets including shares, bonds, property and cash. Investment returns are managed by the firm in a way that aims to provide a smooth progression from year to year.