Here you’ll find some questions and answers on the Child Trust Fund (CTF). Just click on the question to reveal the answer.What does the Junior ISA mean for me if I’ve got a CTF account for my child?Under current legislation, 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:
- It will continue to benefit from tax efficient investment.
- Up to £3,840 a year overall can be contributed by family and friends. This limit runs from your child’s birthday to birthday.
- Your child can only have a CTF or a Junior ISA, they are not entitled to have one of each.
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.
- The CTF will continue to run until your child’s 18th birthday.Can I transfer my child’s CTF into a Junior ISA account?No, under current legislation, 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.What has happened to the Age 7 payments?Unfortunately the Government has stopped age 7 payments for all children that turn 7 after 1 August 2010.I’m thinking about cancelling my Direct Debit – what should I do?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 us a call on 0845 077 1899.I’m pregnant – will my baby be entitled to a Child Trust Fund?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.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 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.I have a child who was born before the CTF was introduced – will they be able to have a Junior ISA?Yes – Junior ISAs will be available for all children under 18 who don’t have a CTF. Find out more about Junior ISAs.I have moved to the UK from within the European Economic Area – will my child qualify for the Child Trust Fund?No, but they can now apply for a Junior ISA – provided your child is now resident in the UK and you’re claiming Child Benefit for them.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?You should have received a Child Trust Fund pack from us by now. If you haven’t please contact us.I’m currently expecting a baby – when will I receive my child’s CTF voucher?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.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 happens if a child with a CTF moves abroad?If the move is temporary there’s no change. You and your family and friends can continue to pay money in (up to the current yearly maximum of £3,840).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.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.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. Please remember that as this 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. 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 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 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.How much money can be added to my child’s CTF account?Currently each Child Trust Fund account can have up to £3,840 every birthday yearadded in total, not including any Government contributions – and all growth in the account will be tax-free.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.Can family and friends contribute to the CTF account?Yes – any friend or family member can contribute to your child’s account. Currently up to £3,840 every birthday year may be added in total – and all growth in the account will be tax-free.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.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).Currently the maximum for all CTF accounts is £3,840 a year (birthday to birthday).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.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 current total amount that can be paid in to the account each birthday year between you is £3,840.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 and Visa Electron.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 £3,840 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, but due to security and privacy reasons we do not know the reasons why your payment has been rejected. 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:
Please fill in the new details it and post it to us at:
The Children’s Mutual
PO Box 1137
No stamp is required.Do you offer a cash deposit (or what’s known as a savings account) Child Trust Fund?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.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 to complete and send us the details of the switch you wish to make. If you have any questions simply contact us.What should I do if have any queries?If you have any queries or would like more information then please contact us.