Child Trust Fund explained
What is the Child Trust Fund (CTF)?
The CTF is a Government savings and investment initiative aimed at giving your child a better financial start. Every eligible child born on or after 1st September 2002 will receive a voucher worth £250 from the Government to be invested in a CTF account.
How can my child get the best from their ethical Baby Bond®?
If you invest just the Government's contributions, your child could receive a useful sum on their 18th birthday – but not enough to make a real difference. The good news is that your child's Baby Bond® could pay out a great deal more. You, your family and friends can make additional contributions which can help the account grow into a really meaningful amount. The minimum amount you can contribute is £10 but together you can top up your child's ethical Baby Bond® by adding up to £1,200 a year. If you paid in the maximum amount every year this could mean a final payout of £37,100 or more – a sum that could really make sure your child gets that flying start. Take a look at the table below:
| Amount paid in each month | Total amount paid (including £250 voucher and £250 at age 7) | Possible value of Baby Bond® stakeholder account in 18 years' time | ||
|---|---|---|---|---|
| Based on 5% growth each year | Based on 7% growth each year | Based on 9% growth each year | ||
| £0 | £500 | £821 | £1,090 | £1,440 |
| £10 | £2,660 | £3,790 | £4,690 | £5,840 |
| £25 | £5,900 | £8,260 | £10,100 | £12,400 |
| £50 | £11,300 | £15,700 | £19,100 | £23,400 |
| £100 | £22,100 | £30,500 | £37,100 | £45,400 |
We've used 18 years as our example period because the money is locked in until your child's 18th birthday. These figures assume growth of 5%, 7% and 9% each year and total charges of 1.5% of the account's value each year. They are only examples and are, therefore, not guaranteed. Clearly, your child could get back more or less than this. Do not forget that inflation would reduce what you could buy in the future. For more detailed information about possible returns, please see The Children’s Mutual website.
Find out more
Go to the special website created by The Children's Mutual for Co-operative Investments. It explains the ethical Child Trust Fund stakeholder account and provides literature on the product. You can also apply online.
Questions?
Phone The Children's Mutual on 0845 600 1953. They are open from Monday to Friday 8am to 8pm and Saturday 9am to 1pm.
The Children's Mutual is authorised and regulated by the Financial Services Authority.
Terms and conditions - You will receive your gift certificate within 28 days of receipt of your first payment. Applications accompanied by the CTF voucher only, or by the voucher and cheque for a lump sum payment only, will not qualify.
