Child Trust Funds

about Child Trust Funds (CTF)

What is a Child Trust Fund (CTF)?

A Child Trust Fund (CTF) is a child savings and investment account developed by the Government to encourage children and their families to save for the future.

The Government Child Trust Fund scheme

The Government Child Trust Fund voucher scheme was introduced with the aim of ensuring that all children have a financial head start when they reach adulthood.

Every child born on or after the 1st September 2002 receives a £250 Child Trust Fund voucher from the Government. This amount rises to £500 for children from families who receive full child tax credit. On the child's 7th birthday, the Government will make a further payment into your child's Child Trust Fund (CTF) of £250. Again, for families in receipt of full Child Tax Credit this will be £500. This is the current proposal and may change in the future.

There is no need to apply for the Child Trust Fund voucher - entitlement for the CTF is linked directly to your child's entitlement to child benefit.

Choosing a Provider

The Government will give you a year to invest your Child Trust Fund voucher. If you don't choose a provider within this time, then the government will automatically invest the voucher for you. Of course, you'll still be able to transfer to the provider of your choice, but the sooner you open the account, the sooner the money can be invested.

engage is one of the UK's leading Child Trust Fund providers.

Deal with an established Child Trust Fund provider with a dedicated UK based customer service team.

engage Child Trust Fund at a glance:

Features & Benefits

The engage Child Trust Fund (CTF) is a Stakeholder account that allows your child’s savings to share in the growth potential of a stock market-based investment. However, please bear in mind that the fact that a Child Trust Fund (CTF) is Stakeholder does not mean that the investment is suitable or that its performance is guaranteed.

The main features of the engage Stakeholder Child Trust Fund account are:

• no hidden charge – one simple low annual management charge of 1.5% and this is guaranteed for the life of the account.
• affordable saving – many Child Trust Fund accounts set the minimum at £10 however the engage Child Trust Fund accepts payments from as little as £5 and has a number of different convenient saving methods.
• stock market growth potential – the engage Child Trust Fund (CTF) invests in shares over a spread of different companies, this helps reduce the risk but also provides the opportunity for stock market growth potential. Most experts agree that if investing for the long term the stock market is a good place to put money. As with most stock market investments the value of the Child Trust Fund (CTF) can fall as well as rise and your child could get back less than has been paid in.
• lifestyling – this is an option that helps to manage the risk of the investment – if you choose this option, when your child turns 13 the money invested for them will be moved gradually from our medium to high risk fund to our medium to low risk fund. By the time your child turns 17 the money will be completely switched over.
• Boots Vouchers – receive up to £25 FREE Boots vouchers when you set up a regular Direct Debit online

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