If you have a child born in the UK on or after 1 September 2002 and before 1 Janauary 2011 then they will have a Child Trust Fund.
The government pays in £250 in your child's first year, boosted to £500 if your household income is low. More importantly, you or anyone else (including KidStart!) can add up to £1,200 to the account each year.
Neither you, nor your child, will be taxed on ay interest or gains in the account. At 18 your child can then use the money in any way they choose - for example, to help towards the cost of going to university, as a deposit on a house, buying a computer or for driving lessons or training.
How do I get my child's money?
Once your child is born you can apply for Child Benefit. Once you start receiving Child Benefit you will automatically receive a Child Trust Fund information pack and voucher for £250 (or £500). This voucher can then be redeemed with a Child Trust Fund Provider when you open your child's account.
I thought the government stopped CTFs?
The government has stopped issuing vouchers for new CTF's but if your child was born before 1 January 2011 then you will still have received a voucher and you have a year to set up your Child Trust Fund.
For additional independent advice visit: