CTFs

Child Trust Funds were introduced in April 2005 as part of the Government's savings strategy. All children born in the UK and eligible for Child Benefit will receive an initial endowment from the Government of £250 with an additional payment of £250 going to children in families on lower incomes. The Government will make a further as yet unquantified payment into every child’s CTF on his or her seventh birthday. Each year family and friends may contribute up to £1,200 a year to the fund which can be invested in a wide range of securities and in cash deposits. Income and gains will be exempt from tax. Funds will not be accessible until the child reaches the age of 18 years when he or she will become absolutely entitled to the Fund.

Visit 4thekids for more details.