Your options if your CTF account is not due to mature

If your Child Trust Fund is not due to mature, then you have some options for what you can do with your account:

Changing the CTF account type: If your CTF is currently a Stakeholder account, then your account is directly tied to the performance of the stock market and may have felt the effects of the COVID-19 pandemic on the fund’s value. Here at Kingston Unity, we offer two types of Child Trust Fund: a Stakeholder account and a Non-Stakeholder account. Our Non-Stakeholder account invests in our With Profits fund. Our With Profits fund invests in a number of different assets including Stock and Shares, Bonds, Property and Cash. By doing this, the risk to the fund is spread. This has meant that throughout the COVID-19 pandemic, our With Profits fund has weathered the storm and continued to deliver the value and securities to those Members who invest in it.

However, the potential returns from a Non-Stakeholder account tend to be less over the long term than a Stakeholder account. This means Members need to weigh up the reduced risk with the potentially lower returns.

You can learn more about each option on our CTF product page here.

CTF Members whose accounts are not due to mature can choose to switch their accounts to the other option by completing our CTF transfer application form found here.

 

Transferring your CTF to a Junior ISA: Those CTF accounts that are not due to mature can transfer their account to a Junior ISA. A Junior ISA is a tax-free savings account that can be opened for people under the age of 18. You can save up to £9,000 a year into a Junior ISA completely tax free. You can’t have both a Child Trust Fund and a Junior ISA, but you can transfer your Child Trust Fund into a Junior ISA.

There are many different Junior ISAs available from different providers and these can offer varying degrees of risk when it comes to your investment. The Kingston Unity Friends & Family Junior ISA invests in the Society’s With Profits fund. This fund aims to provide returns to Members in the long term while offering guarantees on your investments. You can also use your online account to give other friends and family the option to add gifts to the account. They can even leave a little message which the account holder will receive on their 18th birthday when the account matures. You can learn more about our Junior ISA and how you can transfer your CTF to it here.

At maturity, our Non-Stakeholder CTF and our Friends & Family Junior ISA guarantee to pay out at least 100% of the money paid into the account, plus any bonuses added, up to the age of 18. These bonuses are declared at the end of each year and although they are not guaranteed, once added to the account, they cannot be removed.

Please Note: You must confirm you have read the key facts, before downloading this document.

Key Facts about our services and costs

1. The Financial Conduct Authority (FCA)

The FCA is the independent watchdog that regulates financial services. This document is designed by the FCA to be given to consumers buying certain financial products. You need to read this important document. It explains the service you are being offered and how you will pay for it.

2. Whose products do we offer?

We offer products from the whole market

We only offer products from a limited number of companies

We only offer our own products

3. Which service will we provide you with?

We will advise and make a recommendation for you after we have assessed your needs.

You will not receive advice or a recommendation from us. We may ask some questions to narrow down the selection of products that we will provide details on. You will then need to make your own choice about how to proceed.

We will provide basic advice on a limited range of stakeholder products and in order to do this we will ask some questions about your income, savings and other circumstances but we will not:

  • conduct a full assessment of your needs;
  • offer advice on whether a non-stakeholder product may be more suitable.

We can only offer products from Kingston Unity Friendly Society. These products will enable you to:

  • protect yourself and your loved ones in the event of death
  • save and invest with the added benefit of protecting yourself and your loved ones in the event of death
  • provide benefit cover in the event of sickness

4. What will you have to pay us for our services?

Normally, if you buy a financial product direct from us, there will be no payments such as commission or fees payable. If there are any commission or fees payable, we will tell you how we get paid and the amount before we carry out any business for you.

5. Who regulates us?

Kingston Unity Friendly Society, 9 Navigation Court, Calder Park, Wakefield, WF2 7BJ is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and .the Prudential Regulation Authority. Kingston Unity Friendly Society’s FCA Registered Number is 110056.

Kingston Unity Friendly Society permitted business is advising and arranging life assurance and pensions business.

You can check this on the FCA’s Register by visiting the FCA’s website www.fsa.gov.uk/register or by contacting the FCA on 0845 606 1234.

6. What to do if you have a complaint

If you wish to register a complaint, please contact us:
…in writing Write to Kingston Unity Friendly Society, Complaints Department, 9 Navigation Court, Calder Park, Wakefield, WF2 7BJ. …by phoneTelephone (01924) 240164

If you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service.

7. Are we covered by the Financial Services Compensation Scheme (FSCS)?

We are covered by the FSCS. You may be entitled to compensation from the scheme if we cannot meet our obligations. This depends on the type of business and the circumstances of the claim.

Most types of insurance business are covered for 90% of the claim with no upper limit.