Child Trust Funds

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Child Trust Funds

The Child Trust Fund or CTF began operation in April 2005.

This is a Government initiative whereby every newborn child in the country will be entitled to a CTF account, with payments of £250 (or £500 for low-income families) being made at birth. This will be invested on the child's behalf until they reach the age of 18.

The Government has indicated that an additional payment will be made once the child reaches the age of 7. All children born on or after 1st September 2002, who currently receive child benefit, will qualify for a CTF account.

Fund contribution

Parents, family and friends will also be able to contribute to the fund. There will be a "top-up" limit of £1,200 per year or £100 per month. Once money is paid into the account, it must remain there until the child reaches 18.

CTF accounts are likely to be arranged through Banks, Friendly Societies and Insurance Companies.