contributing to a child trust fund
Making regular payments in to your child's child trust fund account can make a real difference. It could help them save towards their first car, university costs or a deposit on their first home, one thing to bear in mind is that inflation will reduce the buying power of the lump sum and affect what it can buy in the future.
Anyone can pay into the child's CTF account, as long as the total contributed each subscription year doesn’t exceed £3,600. A subscription year runs from the child's birthday and ends on the day before their next birthday. Once a contribution has been made to a child trust fund it belongs to the child and will remain in the account until the child reaches 18.
There are lots of ways to make additional contributions to a CTF account. And no matter how you choose to make child trust fund payments, neither you nor your children will have to pay tax on the lump sum your child receives when they turn 18. Remember, the tax treatment could change in the future.
What’s more, when you set up a Direct Debit online you’ll get up to £25 of Boots vouchers absolutely FREE (terms and conditions apply). Anyone who sets up a Direct Debit for a child trust fund will receive the vouchers.
Anyone can pay into a child trust fund by:
For information on how to pay by Standing Order or Direct Credit call us on 0800 169 4321†
