Child Trust Fund
Whilst Child Trust Funds are closed to new business, you can still pay in or transfer your current one to a different provider or our Junior ISA. All the information you need is here
Getting the most out of your child’s CTF options
A 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. Additional contributions can be paid into the Child Trust Fund of up to £4368 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.
Not sure where your CTF may be invested? You’ll need to contact HMRC using the link below.
Highlights of our Child Trust Fund
- Two options – We offer two types of Child Trust Fund for you to choose from; a Stakeholder and a Non-Stakeholder account.
- Transfers only – This product is closed to new business. You can only open a CTF with Kingston Unity by transferring an existing Child Trust Fund from another provider.
- Tax-free – A Child Trust Fund provides a tax-free lump sum to the child at age 18. Save up to £4,368 tax-free per year.
- Flexible payments – Stop, start or vary payments in at any time.
- Transfer to a Junior ISA – Easily transfer your CTF to our Friends & Family Junior ISA
Looking to transfer your CTF?
Did you know you can transfer your Child Trust Fund to our Junior ISA? Learn about your transfer options here
Our Stakeholder account invests in shares in a spread of companies designed to track the performance of the FTSE All-Share index which represents most of the UK equity market. It is important to remember that the performance of the Child Trust Fund (CTF) is related to the performance of the investments held within the Stakeholder fund, therefore what your child might get back is not guaranteed and they could get back less than has been paid in.
Each payment you make buys a number of units at the unit price on that date. The unit price will fluctuate according to the performance of the fund. The unit price is calculated on a weekly basis and is published here.
A Stakeholder account must meet the following Government standards:
- Most of the investments being held are shares.
- Charges must not exceed 1.5% of the value of the account each year.
- Additional contributions can be made by Direct Debit, Cheque, Standing Order or Bank Transfer.
At age 18, the funds in your child’s Stakeholder CTF will be available for them to withdraw or reinvest.
Our Non-Stakeholder account invests in Kingston Unity’s With Profits fund which offers a medium to low-risk investment by investing in a mix of shares, property, bonds and cash. Learn more about how we invest our With profits fund here.
This type of CTF account guarantees that the money paid into it, plus any bonuses added to the account will be available to the child for withdrawal or re-investment on their 18th birthday. Bonuses are added to the account on the child’s birthday each year. Bonuses are not guaranteed, but once added, cannot be removed.
The current bonus rate is 1.5% pa (Variable).
If this account is transferred out before the child’s 18th birthday there may be a Market Value Reduction (MVR) applied. Have a look at our FAQs for more information.
You can choose to transfer you Stakeholder CTF to a Non-Stakeholder CTF and vice versa should you wish to. Get in touch for more information about this.
Our mutual ethos
As a mutual, we are here to create returns for our Members and not for corporate profit. It is the view of our Members that drives the direction of our Society and not the needs of shareholders. This mutual ethos has been the bedrock of our society for over 178 years.
Your Questions Answered
The more commonly asked questions about our Child Trust Fund
Transferring Your Child Trust Fund
Learn about your options to transfer your Child Trust Fund to our Junior ISA