The Government has announced in June 2010 that the scheme will end January 2011. We will add further information when full details are known.
The Child Trust Fund started in April 2005 and is a savings boost for children.
It has been called a baby bond, but it is really a very long-term savings investment for young children born since 1 September 2002. The account belongs to the child and can't be touched until he or she turns 18.
Your child is eligible if Child Benefit is paid and he or she:
- was born on or after 1 September 2002
- lives in the UK
- is not subject to immigration restrictions
The Inland Revenue sent packs to over 10,000 parents in Manchester for children who qualified in early 2005. If you newly qualify for Child Benefit, you will also get a pack. The packs explain about the Child Trust Fund, how to open an account and the different types of account which are available. You will need to set up an account.
The Inland Revenue sends parents a voucher for £250, payable into a Child Trust Fund account. A further payment of £250 is made later for children in families with low incomes. A further payment is planned at age seven, whilst parents and other people can also add to the account.
For advice, call the Inland Revenue's Child Trust Fund Helpline on 0845 302 1470, 8 am to 8 pm, 7 days a week. The Helpline can arrange for you to speak to them in another language.
You may wish to get advice from an Independent Financial Adviser, or to look for reliable expert money websites for comparisons of the different costs and conditions of various Child Trust Funds.
Information on other websites
Inland Revenue
Government information about the Child Trust Fund . Includes a list of providers of Child Trust Funds and factsheets in Arabic, Bengali, Chinese, English, Gujarati, Punjabi, Tamil and Welsh.
Adviceguide
Information from Citizens Advice about the Child Trust Fund
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Information Provider:
Manchester Advice
Date Reviewed:
22 June 2010
This information is for guidance only and is not an authoritative statement on the law. Please read our Terms and Conditions.
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