Child Trust Fund

An Introduction to the Child Trust Fund

The Child Trust Fund is a long term savings and Investment account that was set up by the Government to provide children with a better start in life.

Children born between 1st September 2002 and 2nd January 2011 were given a 250 or 50 voucher, if they qualified. This could then be used to open a Child Trust Fund account. Children receive all the proceeds of the account when they reach the age of 18.

You can transfer an existing Child Trust Fund to us if your child holds one with a different provider. With effect from April 2015 you can also transfer a Child Trust Fund account to a Junior ISA account.

Additional contributions can be paid into the Child Trust Fund of up to 4080 per birthday year. This can be paid in by you, family & friends and are gifts to the child which cannot be repaid to the donor.

Kingston Unity offers two different types of Child Trust Fund.We offer a Non-Stakeholder Account (With Profits) and a Stakeholder Account (Tracker). Both our accounts are classified as investment accounts not savings accounts.

Stakeholder Account (Tracker)

Our Stakeholder accounts invest in shares, in a fund which represents around 98% of UK market equities. Investments into this account buy 'units' - the number of units bought depends on the unit price on the day of investment. As the unit price rises or falls, the value of the child's fund also changes in value.

The unit price is amended weekly and we publish this below.

Unit Price History

  • Current unit price 8th February 2016 - 1.429
  • 1st February 2016 - 1.446
  • 25th January 2016 - 1.425
  • 18th January 2016 - 1.405
  • One month ago 8th January 2016 - 1.505
  • One year ago 8th February 2015 - 1.574

Non-Stakeholder (With Profits)

Our non-stakeholder account invests in our With Profits fund. The aim of this is to spread risk by investing in a wider range of asset classes.

Each year a bonus is added to the account. This is determined by the bonus rate in force during the year. The current bonus rate is 1% pa (variable).

The non-stakeholder account guarantees that at age 18 your child will receive everything that has been paid into the account, by both the government and donors as well as any bonuses added to the account. The account must remain within the non-stakeholder account for this guarantee to be fulfilled.

Transfer to us

If you have a Child Trust Fund with another provider, you can transfer this to a Child Trust Fund with Kingston Unity.

If you have a Child Trust Fund with another provider, you can now transfer this to a Junior ISA with Kingston Unity. Please see the Junior ISA product page for more details about this account.

An alternative Child Savings Plan

If you want to make additional savings for your child's future or have children who are not eligible for a Child Trust Fund, we offer two products to enable parents to take full advantage of the tax free allowances available to them.

Our Child Tax Exempt Savings Plan allows you to save from as little as 5 per month, up to 25 per month tax free.

We also offer a Junior ISA for those children aged 18 and under who are UK resident and who did not qualify for a Child Trust Fund. Please see the Child Tax Exempt Savings Plans and Junior ISA product pages for more details about these accounts.

The Key Features for both Child Trust Funds and all useful forms can be found on this page in the downloads section

For any further details on any of our products please get in touch:

Key Features:

  • Opened with a 'voucher' donation from the Government.
  • Family & friends can pay in up to 4080 per year.
  • Available in stakeholder and non-stakeholder funds.
  • Free from Income and Capital Gains Tax.
  • You can transfer your child's Child Trust Fund to either a Junior ISA or Child Trust Fund with Kingston Unity.
  • Available in addition to your child's Tax Exempt Savings allowance for Friendly Society plans.

Frequently Asked Questions:

  • What is a Child Trust Fund (CTF)?

    A savings and investment account for children, introduced by the government. It is available to children born on or after 1st September 2002 for whom child benefit has been awarded. Family and Friends, between them, are able to make contributions to the account up to a maximum of 4,080 each subscription year.

  • Who has responsibility for a CTF account?

    The ‘Registered Contact’ has responsibility of a CTF account.

    When opening a CTF account a Registered Contact must be nominated on the application form. Where an account is opened on the Government's instruction there will be no Registered Contact. To become the Registered Contact of such an account you should complete an ‘Application to be a Registered Contact’ form.

    The Registered Contact must be 16 or over, with parental responsibility for the child. We can only accept instructions concerning the account from the Registered Contact.

    Please note that once the child reaches 16 they can make a declaration to take over account responsibility.

  • Can I transfer my child's CTF to a Junior NISA?

    Yes. The Government have recently changed the rules on this and it is now possible to transfer a Child Trust Fund account to a Junior NISA.

  • How can I make payments into a CTF account?

    Payments can be made by cheque, cash, bank transfer or by standing order. Investments will qualify for bonus participation immediately.

    To set up a standing order you should download our standing order form and complete the shaded sections ensuring that you quote the child’s URN as the payment reference. Completed standing order forms should be sent direct to your bank. Alternatively you can use the details on the standing order form to set up internet banking payments. Again you should use the URN as the payment reference, so that we can allocate your child's contribution to the correct account.

    Where you wish to make a payment by cheque or postal order please send your payment with a completed payment slip.

    All payments are treated as gifts, so the payer loses all ownership and other rights attached to it. There is no contractual obligation to pay into a CTF.

  • How does the unit price work? (stakeholder fund only)?

    When we open an account you will be allocated a number of units. The number of units bought depends on the unit price in force on that date.

    The number of units bought will be the amount paid into the account divided by the unit price.

    For Example, if the unit price was 1 when the account was opened this would by 250 units.

    The value of the account at any time is the number of units held multiplied by the current unit price.

    The unit price is published weekly. The price varies depending on the performance of the underlying fund. The price may go down as well as up.

  • What charges are there and how will they affect the investment (Stakeholder Only)?

    Kingston Unity charges 1.5% of the value of a stakeholder account each year for managing it and investing the money. For example, if the CTF account is valued at 800 throughout the year, this means that we charge a maximum of 12 that year. If the value is 2400 throughout the year, we charge a maximum of 36 that year. There are no other regular charges.

    Under current Government regulations, the overall charge for CTF account cannot be more than 1.5% a year. The charges are included in the price of each unit.

  • What charges are there and how will they affect the investment? (Non-Stakeholder Only)?

    There are no charges deducted from the account for running a Non-Stakeholder Account. Each year bonuses will be declared on the ‘With Profits Fund’ and these will be automatically added to the account. Once added they are guaranteed and cannot be taken away other than on transfer to another provider. We may add a final bonus to the value of the account on top of the reversionary bonuses to date.

    Any charges will have been taken into account when the bonuses are declared. The society will make a charge of no more than 1.5% of the account value each year over the life of the fund.

  • How can I keep track of the CTF investment?

    Where requested, or if contributions have been made during the subscription period, a statement showing the value of the CTF will be sent within 60 days of the child’s birthday.A statement will automatically be sent on the child's 4th, 10th and 15th birthday.The statement will also provide details of all the payments made into the account that year. As well as being able to see the value of the account each year in the statement, you can ask at anytime for the value of the account by email or in writing.

    For the stakeholder account our rules require us to price our units at least monthly. Initially the price of the units will be calculated weekly and available on the first working day of the week and can be obtained by email at or by telephoning us on 01924 240164 during normal office hours. The unit price will also be published on our website under the CTF page.

  • What about my child who didn't qualify for a Child Trust Fund?

    For children who did not qualify for a Child Trust Fund, we offer a Junior Saver that allows regular monthly savings and a Junior Investment NISA which works in the same way as a Child Trust Fund but without any contributions from the Government. Please refer to our Products section for information about both of these products.

Where are my premiums invested?

The premiums are invested in the Kingston Unity With-Profits Fund which invests in a mixture of assets such as property, fixed deposits, shares and cash. Find out more »