Key facts about the Child Trust Fund

  • a long-term savings and investment account where your child (and no-one else) can withdraw the money when they turn 18
  • neither you nor your child will pay tax on income and gains in the account
  • £250 voucher to start each child’s account
  • children in families with lower incomes will automatically get an additional payment of £250 from the Government.  For more information use this link

    Qualifying for the additional payment
  • a maximum of £1,200 each year can be saved in the account by parents, family or friends
  • money cannot be taken out of the Child Trust Fund (CTF) once it has been put in – once your child is 18 they will be able to decide how to use the money
  • children can start to make decisions about how the money is managed when they are 16
  • the Government will make a further contribution when your child turns seven - all eligible children will receive a further payment of £250 into their CTF account at age 7, with children in lower income families receiving an additional £250. These payments will be paid around the child's 7th birthday direct into their account  
  • from April 2010, children entitled to Disability Living Allowance (DLA) will receive annual payments of either £100 or £200 dependent on the care component of their DLA award
  • not just one type of CTF account – you choose the type of account you want for your child
  • at any time you can move the account to a different provider or change the type of account  
  • it will not affect any benefits or Tax Credits you receive.



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