engage Child Trust Fund

about Child Trust Fund's (CTF)

what is a Child Trust Fund (CTF)?

Child Trust Fund (CTF) is an initiative set up by the Government which commenced in 2005. It is a long term child savings and investment account created to encourage children and their families to save for the future.

Who is eligible for a Child Trust Fund?

Every child born on or after the 1st September 2002 who is a UK resident and claiming child benefit receives a Child Trust Fund voucher from the Government. The amount is either £250 or £500 depending on family income level. At the age of 7 your child may be eligible for a further contribution from the Government of £250 or £500. These payments will be paid directly into your Child’s Child Trust Fund account. This is the current proposal and the government may change this in the future.

There is no need to apply for the Child Trust Fund voucher - entitlement for the Child Trust Fund (CTF) is linked directly to the child's entitlement to child benefit.

The Child Trust Fund Voucher

The Government will allow you a year to invest the voucher with a Child Trust Fund provider of your choice. After this time they will automatically invest your child’s CTF voucher for you. You will still be able to transfer your child’s Child Trust Fund (CTF) to a different provider if you choose, but the sooner you open your child’s account, the sooner the money can be invested.

Choosing a Child Trust Fund account

There are 2 different types of Child Trust Fund account to choose from:

Stakeholder Child Trust Fund Account
Non Stakeholder Child Trust Fund Account (stock market or deposit based)

engage offers a Stakeholder Child Trust Fund Account

Stakeholder Child Trust Fund accounts

The Government produced a set of standards that providers and their Child Trust Fund account must adhere to in order to be able to offer a Stakeholder Child Trust Fund account.

Please see the table below (key points of stakeholder and non-stakeholder ctf accounts) for more information.

Non Stakeholder Child Trust Fund

A Non Stakeholder Child Trust Fund account can either be a stock market based investment or a deposit based account. This type of account is not required to meet the Stakeholder standards set out by the Government.

Savings / Deposit based non stakeholder accounts

If you do not want a stock market based investment for your child, you can invest the Child Trust Fund Voucher in a savings or deposit based account. This type of non-stakeholder Child Trust Fund (CTF) earns interest in a similar to a bank or building society savings account.

Key points of stakeholder and non-stakeholder CTF Accounts

Please see the table below for a brief comparison of stakeholder and non-stakeholder Child Trust Fund accounts.

Feature	Stakeholder CTF Account	Non stakeholder CTF Account
Annual Management Charge	Maximum 1.5%	Charges are not capped and may have an annual management charge higher than 1.5%
Minimum payment	Can accept payments as little as £10	May set the minimum payment level higher than £10
Investment type	Must invest in a fund that invests in the shares of a spread of companies to help spread any risk	Doesn't have to invest in a spread of companies - can invest solely in one company. Can be deposit based
Payments in	By cheque, Direct Debit, standing order and direct credit	Can restrict the methods of paying in
Lifestyling	Yes	No

Payments into a Child Trust Fund account

In addition to any government contributions, you, your friends, family, godparents or anyone who wishes to contribute can save up to a total of £1,200 between you in each subscription year. Subscription years run from your child’s birthday to the day before their next birthday.

You can easily top up an engage Child Trust Fund account online by setting up a regular Direct Debit or by making a Debit Card payment. For further details of how to pay into an engage Child Trust Fund account click here or call a member of our UK customer services team on 0800 028 1050 †. Lines open Monday to Friday 8am-8pm and Saturday 9am-4pm.