Savings
Child Trust Funds - the tax efficient savings for children
Child Trust Funds are tax-efficient savings and investment accounts for children. Any child born on or after 1 September 2002, is eligible to have a Child Trust Fund. The government provides a £250 voucher to start your child's Child Trust Fund and a further payment of £250 when your child reaches the age of 7, with children from lower-income families receiving an additional £250 in both cases. In addition, you may add up to £1,200 a year to the fund. No tax is payable on Child Trust Fund savings and investments. A Child Trust Fund account belongs to the child and the funds in it cannot be touched until the child reaches the age of 18.
Child Trust Funds: Your questions answered
How the Child Trust Fund works. Who can have a child trust fund and who may contribute to a Child Trust Fund.Don't qualify for a Child Trust Fund? Try this
Savings for children - what's available in kids' accounts, what tax benefits there are and what risk your savings may face.
Moneyextra: Child Trust Funds - Cash Option Selection
| Provider Name | Rate % AER | Notes |
|---|---|---|
| Britannia Building Society | 7.00% | Rate includes 1.25% bonus for 24 months |
| Furness Building Society | 5.45% | |
| Nationwide Building Society | 6.50% | Includes 1% bonus yearly if account topped up by £240 per account year |
| Skipton Building Society | 6.25% | |
| Yorkshire Building Society | 6.55% | Rate includes 0.70% bonus for 12 months |
Last updated July 2008. Accounts based on balance of £250. Please see our Initial Disclosure Document.