Child Trust Fund is a scheme set up by the government for all children born on or after 1 September 2002. Why not open an account today and make a start in paving the way for their future?
How it works
The government will make an initial payment of £250, via a voucher, to all eligible child benefit claimants. This money and all further contributions to the HSBC Child Trust Fund, will be placed in a special investment account until the child reaches 18.
The essentials
Available for all children born on or after 1 September 2002 who live in the UK and are not subject to immigration control. The person opening the account must be an eligible child benefit claimant.
- Up to £1,200 per birthday year can be added by lump sum or regular payments to the Child Trust Fund by family and friends
- The Child Trust Fund will belong to the child and all contributions will be a gift to them
- The Government will make an additional contribution when your child is seven years old
- Money cannot normally be taken out of a Child Trust Fund until the child reaches the age of 18. However, at that time, the money will be free from income and capital gains tax
- An annual statement will be sent giving the value of the CTF and full details of all transactions carried out during the year
The value of the tax treatment described will depend on individual circumstances. Tax rules could change.
From 2 June 2008 fund prices can be found under "HSBC Gbl Asst Man (HSBC Investments)" on www.investmentuk.org.
You may also be interested in:
Our My Savings account as another way of saving for children.
