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Child Trust Fund vouchers - don't lose interest!
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Update: January 2007
By now most parents of all children born on or after 1 September 2002 will have received a voucher of at least £250 to start their Child Trust Fund savings or investment account that the child can access when they reach 18, but many parents are not depositing the vouchers.
To find out more about the Child Trust Fund and how much it can be worth by the time a child is 18, go to the Child Trust Fund website, www.childtrustfund.gov.uk, or call the Child Trust Fund on 0845 302 1470.
Why is it important to open the Child Trust Fund account now?
Once you open the account with the voucher, the money in the child’s account can start to earn interest and grow. If you delay opening the account, your child may miss out on the interest from a savings account or return from an investment account so it’s important not to delay opening account once you have the information you need to decide which type of account and provider will suit you.
How can I find out about the different types of accounts?
If you're not sure which type of account to open see the toolkit on the Child Trust Fund website. Go through the steps to see which type of account would suit you.
For more information about savings and investments and how to shop around for the right account see www.moneymadeclear.fsa.gov.uk/guides/starting_a_family.html.
How can I find out about Child Trust Fund account providers?
There are lots of companies who offer Child Trust Fund accounts, there is a full list of companies at childtrustfund.gov.uk
What should I make sure I ask before opening an account?
Before choosing which one to use, ask the provider whether there are any fees for running the account, whether you have to put money into the account regularly and what the likely return on the money you are investing might be so you can compare different accounts and find one that suits you. You may also wish to ask what their policy about social, ethical and environmental investments is. If they have a policy, they must publicise it.
What happens if I don’t open an account?
If you don't open an account before the voucher expires after a year, the Inland Revenue will open a stakeholder Child Trust Fund account for your child and send the details to you. This makes sure your child doesn't miss out, but they will lose any return they might have gained on the money before the account was opened. When you get the details you can apply to the provider to be the registered contact. You will then be entitled to manage the account and decide whether you want to change the type of account or the provider.
What if I have lost the voucher?
If you have lost the voucher call the Child Trust Fund Helpline on 0845 302 1470 and they will send a new one within a month.
What should I do after I have opened my child's account?
You don't have to add money to the account but you, family or friends can pay in up to £1200 a year in addition to the government contribution. To see how the account will grow by the time your child reaches 18 go to the Child Trust Fund Calculator.
Community languages
The Child Trust Fund website also has pdfs of the factsheet available in community languages on the Child Trust Fund home page: www.childtrustfund.gov.uk
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