Credit Union Child Trust Fund

What Is the Credit Union 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.

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 is 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 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.

Your child is eligible for a Child Trust Fund (CTF)account as long as:

your child was born on or after 1 September 2002
your child lives in the UK
you receive Child Benefit for your child and
your child is not subject to immigration control.
Children born between 1 September 2002 and 5 April 2005 had to be living in the UK on or after 6 April 2005 to be entitled to the CTF.

Children living in the UK for whom Child Benefit is being received and who were born on or after 1 September 2002 are entitled to a Child Trust Fund account. You don't need to make a claim to get the account started, the Government will send you a voucher for £250 automatically.

The account can give your child a head start as a young adult. It will help your child understand personal finance and the importance of saving for their future. The account belongs to them and when they turn 18, the money is theirs to use as they think best.

Caerphilly and District Credit Union Ltd
Abacus House
Windsor Street
Caerphilly
CF83 1FW
02920 883751