Child Trust Fund

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F&C Child Trust Fund
At last there is some good news for parents. The Government has introduced the Child Trust Fund – designed to give every child, born on or after 1 September 2002, a lump sum when they reach age 18. The idea is to ensure that each child has a pot of their own to start their adult life.

How does it work?

  • Every child born in the UK on or after 1 September 2002 will get at least £250 as a starting voucher. Families on low incomes should receive an additional £250. Another voucher is planned when children reach age seven.
  • The voucher must be invested in a CTF account with a registered CTF provider, like F&C.
  • Every fund can be topped up by families or friends, up to a maximum limit of £1,200 a year.
  • Any growth is tax-free.
  • The fund is in the child’s name but the money cannot be accessed until the child is 18.
  • With the F&C Child Trust Fund you can invest in a range of investment trusts or in a Stakeholder account.

If you would like to retain access to the money or invest more than £1200 a year, please look at the F&C Children’s Investment Plan.

Worried about stockmarket performance?

  • Cash savings, like bank and building society accounts, are very low risk but they also offer relatively low returns and their real value can be slowly eroded by inflation.
  • History overwhelmingly suggests that over long periods of time, such as 10 years, stockmarket investments can provide higher returns if you are willing to accept some degree of risk. Fortunately, children have time on their side.
  • Saving regularly each month can help smooth out the highs and lows because you buy fewer shares when prices are high and more when prices are low.
  • It's important to pick the right type of investment and the facts are that, over long periods, the average investment trust has performed better than other mainstream investment classes.

Put your trust in F&C
F&C is one of the UK’s leading investment trust providers managing over £101bn assets at 30 June 2007. In recognition of their excellence in children’s investments, F&C was voted ‘Best Children’s Investment Provider 2007’ by What Investment magazine.

Stock market and currency movements mean the value of your investment can fall as well as rise and you may get back less than you invest, whereas savings in a bank or building society are readily accessible and capital and interest, once earned, is guaranteed. Past performance is not a guide to future performance.

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Last updated: almost 2 years ago