Base PowerPoint template with English logo

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A presentation for intermediaries advisers
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• What is CTF?

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What is CTF?

• A long-term savings and investment account for
  children
• Who is eligible?
• Children born on or after 1st September 2002 if
  Child Benefit is awarded for them, they live in
  the UK, and are not subject to immigration control

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The aims of CTF

• Encourage parents and children to develop the
  saving habit
• Ensure that in the future all children have a
  financial asset at the start of their adult life
• Improve financial capability

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How does CTF work?

• CTF follows automatically once Child Benefit has
  been awarded
• Parents receive an information pack covering CTF
  key features, how to open an account, and types
  of account
• Followed by a 250 voucher parents can use to
  open an account

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What is CTF worth?

• 250 for every eligible child.
• An additional 250 paid by the Government into
  the CTF accounts of children in families
  receiving full Child Tax Credit (CTC) with
  household income (for 2007/08) of 14,495 or
  below
• Another payment of 250 by the Government when
  the child turns 7 (with an extra 250 for low
  income families)

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CTF - other features

• Parents, family, friends and the child will be
  able to contribute up to a total of 1,200 a year
  into a CTF account
• Neither parents nor children will pay tax on
  interest or gains in a CTF account
• Each voucher is valid for a year. If it isnt
  used, the Government will open a CTF stakeholder
  account for the child

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Special arrangements

• For looked-after children or children in care
• For terminally ill children
• For those living outside the UK
• Go to www.childtrustfund.gov.uk for more
  information

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CTF - what parents need to do

• There is no HM Revenue Customs (HMRC) form to
  fill in to get CTF but parents do need to claim
  Child Benefit
• When the voucher arrives, parents need to decide
  who will open the account, which provider to use
  and the type of account they want
• The 250 Government contribution will be credited
  once the account is open

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Choosing an account
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CTF types of account

• Different types of CTF account offered by a range
  of providers and distributors to suit peoples
  needs
• 1. Stakeholder accounts
• 2. Shares accounts
• 3. Savings accounts
• 4. Sharia and Ethical accounts
• Providers banks, credit unions, building or
  friendly societies
• Distributors high street retailers

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1. Stakeholder Accounts

• Money invested in companies shares, so it grows
  if they do well
• Value of shares can fall, but account has to
  follow Government rules to reduce the risk of
  losing money
• A mix of investments - money moved to lower risk
  investments once the child is 13
• Charges for this account are kept low and it is
  designed to give a good return over 18 years

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2. Shares Accounts

• Money grows by being invested in companies
  shares
• If those companies do well, the money grows, but
  if they do badly you may get back less than you
  put in
• Account does not have to follow the additional
  stakeholder rules
• If you are willing to take this higher risk, it
  may mean your child gets even more money at 18

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3. Savings Accounts

• Cash option, which doesnt take the risk of
  investing in shares
• The child will get back what their parent saved
  with interest
• BUT it may not grow as much as in other kinds
  of account

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4. Alternative accounts

• Ethical accounts
• Ethical accounts have an investment policy and
  will only invest money in companies that fit that
  policy, for example those that aim to protect the
  environment.
• Sharia accounts
• Sharia accounts are based on Islamic values, as
  defined by the principle of Sharia law and will
  not invest in areas such as alcohol, tobacco and
  gambling.

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Government default account

• After 12 months the voucher will expire and the
  Government will open a Stakeholder Account on the
  childs behalf
• The account provider will be allocated from a
  list of Providers and parents will receive a
  letter telling them where their childs voucher
  has been invested
• Opening an account is not a final decision. If
  parents are not comfortable with the type of
  account they have, or they want to change
  providers, they can at any time

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Giving financial information

• If parents ask you where they should open
  their CTF account
• Only licensed financial advisers can give
  financial advice like this
• But theres lots of information you can give to
  help them make their decisions themselves
• www.ctfhelp.com has a questionnaire which helps
  parents think about whats important to them
• And provides an up-to-date list of CTF providers
  and their accounts

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Lost vouchers

• Replacement vouchers can be requested via
• 1. The CTF website (www.childtrustfund.gov.uk)
• 2. The CTF helpline on 0845 302 1470
• Lost vouchers can not be cashed in by anyone else
  the code on it is unique to each child.

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• Sources of Information

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CTF websites

• Information about CTF - including FAQ and foreign
  language versions of basic CTF information
• Resources for Voluntary and Community
  Organisations
• List of current CTF providers and distributors
• Account chooser toolkit
• Online calculator

www.ctfhelp.com
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CTF helpline

• CTF helpline 0845 302 1470 - The CTF telephone
  helpline for parents and general enquiries.
• Adviser priority line 0845 302 1461- For use
  when advisers are with a parent and need an
  immediate answer to a query. (not to be given to
  parents)
• Call-back translation service is available
• CTF e-newsletter with the latest news, updates
  and resources available. Email ctf_at_23red.com to
  subscribe for free