Your Questions Answered

What are CTF's?

Child Trust Funds (CTF's) are savings accounts for children. The Government starts the saving by sending a voucher for each child which must be invested in a CTF.

Who are CTF's for?

All those born on or after 1st September 2002, living in the UK and registered for Child Benefit, will automatically be sent a £250 voucher (£500 if you recieve full Child Tax Credit)

Can Parents use this money?

The voucher can only be invested into a CTF through accredited providers, one of which is Erewash Credit Union. Only the child will be able to access the money, including interest when they reach 18.

Can the money be withdrawn in an emergency?

The only two grounds for accessing a CTF account are:

1. a child's death or
2. diagnoses of a terminal illness.

There are special arrangements in place for this.

Can Parents contribute to the CTF?

Anyone, including relatives, friends and the children themselves (when older) can top up the CTF by a maximum of £1200 a year (per child). It is a great idea to encourage contributions to the CTF as all the interest is tax-free. In addition to this, the Government will make a second payment into all CTF's when those children who qualify reach the age of seven.

What can the saved money be used for?

There are no restrictions on how the money can be used after the age of 18. For example, it could be driving lessons, college fees or a payment towards rent or thier first property mortgage.

How do I open a CTF with Erewash Credit Union?

Simply complete an application form and take it with the CTF voucher and the child's birth certificate to our main office in the Ilkeston Co-op Department Store or to one of our advice/information points.