A presentation for parents

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A presentation for parents
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Introducing CTF

• If you have a child born since 1st September 2002
  then you need to know about CTF
• You may have already received this letter from
• HM Revenue Customs

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What is CTF about?

• Encouraging parents and children to save for the
  future
• Giving children a financial head start when they
  grow up

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Who gets it?

• Children born on or after
  1st September 2002
• Who are
• Living in the UK and
• Receiving Child Benefit
• Not subject to immigration laws

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• How does CTF work?

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How does CTF work?

• HM Revenue Customs will send you an information
  pack telling you all about CTF, once youve been
  awarded Child Benefit
• There are no extra forms to fill in
• A few days later you will get a CTF voucher for
  your child through the post

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What is CTF worth?

• 250 voucher for all children
• An extra 250 for children in families on lower
  incomes (14,495 or below for 2007/08)
• Another payment of 250 (or 500) when the child
  turns 7 years old

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Special arrangements

• For looked-after children or children in care
• For terminally ill children
• For those living outside the UK
• Ethical accounts
• Go to www.childtrustfund.gov.uk for more
  information

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What do I do with the voucher?

• Use it to open a CTF account
• The information pack has a list of
• 1. CTF Providers Bank, Credit Union, Building
  or Friendly Society
• 2. CTF Distributors High street retailers
• Choose the provider and type of CTF account
  thats right for your child
• You can use your voucher to open your childs
  account with any provider or distributor

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Will I need anything else?

• When you are ready to open your childs CTF
  account, you might need some ID
• Passport
• Utility Bill
• The CTF voucher
• Ask the provider or distributor if you need help

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What if I lose my voucher?

• Replacement vouchers can be requested via
• 1. The CTF website (www.childtrustfund.gov.uk)
• 2. The CTF helpline on 0845 302 1470
• Lost vouchers can not be cashed in by anyone else
  the code on it is unique to your child.

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• Choosing an Account

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Types of CTF Account

• 1. Stakeholder accounts
• 2. Shares accounts
• 3. Savings accounts
• 4. Ethical and Sharia accounts

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1. Stakeholder Accounts

• Money invested in companies shares it grows if
  they do well
• Value of shares can fall, but account has to
  follow government rules to reduce the risk
• A mix of investments - money moved to lower risk
  investments once the child is 13
• Designed to give a good return over 18 years

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2. Shares Accounts

• Money grows by being invested in companies
  shares
• If those companies do well, the money grows, but
  if they do badly you may get back less than you
  put in
• Account does not have to follow the additional
  stakeholder rules
• If you are willing to take this higher risk, it
  may mean your child gets even more money at 18

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3. Savings Accounts

• Cash option, which doesnt take the risk of
  investing in shares
• Your child will get back what you saved with
  interest
• BUT it may not grow as much as in other kinds
  of account

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4. Alternative accounts

• Ethical accounts
• Ethical accounts have an investment policy and
  will only invest money in companies that fit that
  policy, for example those that aim to protect the
  environment.
• Sharia accounts
• Sharia accounts are based on Islamic values, as
  defined by the principle of Sharia law and will
  not invest in areas such as alcohol, tobacco and
  gambling.

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What happens if I dont open an account?

• If you dont use your Child Trust Fund voucher
  within a year to open an account it will expire.
• The Government will then open a Stakeholder
  Account for your child and put in 250
• Opening an account is not a final decision. If
  you change your mind about the type of account
  you want, or youre not happy with your provider,
  you can change it at any time
• Your account provider will tell you how

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• Common questions

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How soon can I use the voucher?

• Straight away
• And the sooner you open your childs CTF account,
  the sooner the money will start to grow

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What if I dont have a bank account?

• You dont need to have any kind of bank account
  to open a CTF account for your child

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Do I have to pay any money into the CTF account?

• No, but even small amounts can make a difference
• Anyone can put money into a CTF account -
  parents, grandparents, other family and friends
  up to 1200 every year
• There is no tax to pay on money in a CTF account

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Who can take money out of the CTF account?

• No one can touch the money in a CTF account until
  the child is 18
• The money belongs to the child and only the
  18-year- old can take the money out
• When your child is 18 they can choose how to use
  this money to give themselves opportunities

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Where can I find out more?

• Theres lots of information online at

www.childtrustfund.gov.uk

• - Including an online calculator to help you
  work out what your account could be worth
• - CTF help.com has a toolkit to help you
  choose the right account for you
• - Or you can phone the CTF Helpline on 0845
  302 1470 with a call back translation service