Investments: Child Savings Plans

A summary of the main characteristics of the CTF is as follows:

• Each individual CTF begins with an initial payment of £250 (or sometimes more depending on eligibility) provided by the government in the form of a voucher, sent automatically to the Child Benefit claimant, who is usually, but not always, one of the parents. Only children living in the UK are eligible.
• If the child's family is eligible for the full Child Tax Credit, the payment is increased from £250 to £500.
• The parent of carer then uses the voucher to open a CTF account with a CTF provider, with the account remaining in force until the child's 18th birthday when the proceeds can be accessed.
• Parents, family and even friends can make additional investments into a CTF. The maximum additional investment in each CTF will be £1,200 per year.