Child Trust Funds

We all want to give our children the best possible start in life. By opening a Child Trust Fund account with Y Llechen credit union and adding to it regularly you could help your child buy their first car, pay university fees, or put a deposit on their first house.

What are Child Trust Funds?

The Child Trust Fund (CTF) is a savings account for children and is designed to help your child save from an early age. The government starts the savings by giving a £250 or £500 voucher (depending on your financial situation) to each child. The government will contribute an additional sum when your child reaches the age of 7. The voucher must be put into a Child Trust Fund and can be topped up by parents, family and friends to a maximum of £1,200 a year. The money can only be taken out by the child when they reach the age of 18.

Who receives CTF voucher?

Any child born on or after the 1st of September 2002, living in the UK and registered to receive child benefit will automatically receive a CTF voucher. The CTF will not affect any benefits or child tax credits you receive.

Are there different types of CTFs?

Yes, there are three types of CTFs. Y Llechen credit union offers a cash savings CTF account. This is a long term, risk free account so when your child reaches the age of 18 they will be guaranteed to receive the amount that has been paid into the account plus any interest. The other two CTFs are stakeholder CTFs and non stakeholder CTFs. These are investment accounts and their value can go up or down depending on how the stock market performs, which means that they are more risky. Y Llechen credit union can provide you with more information on all these accounts.

What are the benefits of a CTF operated by Y Llechen credit union?

• No set up or closure costs
• No minimum contributions
• A number of easy ways to make regular or one off deposits
• Safe and local place to save
• Attractive returns on savings. Current interest rate is 3% per annum

How do I add to the CTF?

You can pay additional savings into a CTF by:

• Paying cash into a Y Llechen credit union office or collection point
• Setting up a standing order or direct debit
• Posting a cheque to Y Llechen credit union
• Transfer from credit union savings or current account
• Payroll deduction - where available

Deposits can be made regularly or as one off payments.