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					Child Trust Fund (CTF)
 What will yours grow into?
    A presentation for parents
                 Introducing CTF

• If you have a child born since
  1st September 2002 then you
  need to know about CTF

• You may have already
  received this letter from
  HM Revenue & Customs
               What is CTF about?

•   Encouraging parents and children to save for the future

•   Giving children a financial head start when they grow up
                     Who gets it?

• Children born on or after
1st September 2002

• Who are:

Living in the UK and…
Receiving Child Benefit
Not subject to immigration laws
How does CTF work?
                 How does CTF work?

• HM Revenue & Customs will
  send you an information pack
  telling you all about CTF, once
  you’ve been awarded Child

• There are no extra forms to fill

• A few days later you will get a
  CTF voucher for your child
  through the post
              What is CTF worth?

• £250 voucher for all children

• An extra £250 for children in families on lower incomes
  (£16,040 or below for 2009/10)

• Another payment of £250 (or £500) when the child
  turns 7 years old
               Special arrangements

• For looked-after children or
  ‘children in care’

• For terminally ill children

• For those living outside the UK

• Ethical accounts

• Go to
  for more information
              What do I do with the voucher?

• Use it to open a CTF account
• The information pack has a list of:
1. CTF Providers = Bank, Credit Union, Building or Friendly
2. CTF Distributors = High street retailers
• Choose the provider and type of CTF account that’s right for
  your child
• You can use your voucher to open your child’s account with any
  provider or distributor
           Will I need anything else?

  When you are ready to open your child’s CTF account,
  you might need some ID

• Passport
• Utility Bill
• The CTF voucher

 Ask the provider or distributor if you need help
         What if I lose my voucher?

•   Replacement vouchers can be requested via:

1. The CTF website (
2. The CTF helpline on 0845 302 1470

•   Lost vouchers can not be cashed in by anyone else
    – the code on it is unique to your child.
Choosing an Account
           Types of CTF Account

• 1. Stakeholder accounts

• 2. Shares accounts

• 3. Savings accounts

• 4. Ethical and Shari’a accounts
             1. Stakeholder Accounts

• Money invested in companies’ shares; it grows if they
  do well
• Value of shares can fall, but account has to follow
  government rules to reduce the risk
• A mix of investments - money moved to lower risk
  investments once the child is 13
• Designed to give a good return over 18 years
                 2. Shares Accounts

• Money grows by being invested in companies’ shares

• If those companies do well, the money grows, but if
  they do badly you may get back less than you put in

• Account does not have to follow the additional
  stakeholder rules

• If you are willing to take this higher risk, it may mean
  your child gets even more money at 18
               3. Savings Accounts

• Cash option, which doesn’t take the risk of
  investing in shares

• Your child will get back what you saved with

• BUT – it may not grow as much as in other
  kinds of account
             4. Alternative accounts

Ethical accounts

• Ethical accounts have an investment policy and will only
invest money in companies that fit that policy, for example
those that aim to protect the environment.

Shari’a accounts

• Shari’a accounts are based on Islamic values, as defined
by the principle of Shari’a law and will not invest in areas
such as alcohol, tobacco and gambling.
           What happens if I don’t open
                  an account?
• If you don’t use your Child Trust Fund voucher within a
  year to open an account it will expire.

• The Government will then open a Stakeholder Account
  for your child and put in £250

• Opening an account is not a final decision. If you change
  your mind about the type of account you want, or you’re
  not happy with your provider, you can change it at any

• Your account provider will tell you how
Common questions…
            How soon can I use the

• Straight away

• And the sooner you open
  your child’s CTF account, the
  sooner the money will start to
              What if I don’t have a bank

• You don’t need to have any
  kind of bank account to open
  a CTF account for your child
            Do I have to pay any money
            into the CTF account?

• No, but even small amounts
  can make a difference
• Anyone can put money into
  a CTF account - parents,
  grandparents, other family
  and friends – up to £1200
  every year
• There is no tax to pay on
  money in a CTF account
          Who can take money out of the
          CTF account?

• No one can touch the money in a CTF account until the
  child is 18
• The money belongs to the child and only the 18-year-
  old can take the money out
• When your child is 18 they can choose how to use this
  money to give themselves opportunities
             Where can I find out more?

• There’s lots of information online at:


- Including an online calculator to help you work out
what your account could be worth
- CTF has a toolkit to help you choose the
right account for you
- Or you can phone the CTF Helpline on 0845 302 1470
– with a call back translation service

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