Citysave Credit Union is a safe, ethical and friendly place to help your child prepare for adult life with something to look forward to.
Your Questions Answered
What are CTFs?
Child Trust Funds (CTF) are saving accounts for children. The Government issues a voucher for each child and this must be invested in a CTF.
Who are the Child Trust Funds for?
All those born on or after 1 September 2002, living in the UK and registered to receive Child benefit, will automatically be sent £250 (£500 if you receive full Child Tax Credit).
Can parents use this money?
Parents will receive a voucher which can only be invested into a CTF through accredited providers, one of which is Citysave. Only the child will be able to access the money, including the interest, after reaching the age of 18.
Can the money be accessed in an emergency?
The only two grounds for accessing a CTF account are in the event of a child’s death or diagnosis of terminal illness. There are special procedures in place for this.
Can parents contribute to the CTF?
Anyone, including relatives, friends and the children themselves when older can top up the CTF up to a maximum of £1,200 a year. It is a great idea to encourage contributions to the CTF as all these and the interest is tax free. In addition to this, the Government has promised that it will make a second and final payment into all CTFs when those children who qualify reach the age of seven.
What can the saved money be used for?
There are no restrictions on how the money can be used after the age of 18. For example, this can be driving lessons, university fees or a payment towards their first property mortgage.
How do I open a CTF with Citysave?
Simply complete the attached form and take it with the CTF voucher and the child’s birth certificate to our office or any of the information points.
Main Terms and Conditions
- This Child Trust Fund will be operated in line with the Governments Child Trust Fund scheme rules.
- With this cash based option, the child is guaranteed to get back the money paid into it when they reach 18, plus interest Paid each year.
- The minimum interest rate will be no less than 1% below the Bank of England Base Rate as published from time to time.
- You will be sent an annual statement within a period of 61 days of the child's birthday each year.This statement will include notification of the current interest rate on this account.
- Interest is payable on the 1st April each year.
- We will give you 30 days notice of any changes to the interest rate paid on this Child Trust Fund.
- Although the Registered Contact has control over the Child Trust Fund, it belongs to the child. When the child reaches 16, they can apply to take control, but they will not be able to access the money until their 18th birthday.
- On their 18th birthday, the child will take control of this account and they can continue to save.
- Any returns from a Child Trust Fund are free of personal tax. The favourable tax benefits of Child Trust Funds may change in the future.
- You or anyone else can make additional contributions to the account. Family, friends and the child themself will be able to contribute up to £1,200 a year between them. This yearly allowance runs from birthday to birthday. Any additional contributions are locked in and non-returnable to the donor. The money in the Child Trust Fund cannot be withdrawn until the child is 18, and then only by the child.
- You will be sent a copy of our terms and conditions before we open the account. You will have two days to cancel.