Child Trust Fund - Common questions
First steps to a brighter financial future.
The answers you're looking for
- How do I get the voucher?
- How much can I expect to receive?
- Where will the money be invested?
- Is there a limit to the amount that can be invested in the Child Trust Fund?
- When can I have access to the money?
- How will I know how much the fund is worth?
- Will legal guardians receive the voucher?
- Can I put the voucher into my bank account?
- Can I get the cash amount of the voucher now?
- Can the money be withdrawn at any time?
- What happens if I don't open an account?
How do I get the voucher?
Anyone who is claiming child benefit will automatically receive a voucher for each child born on or after 1 September 2002. You do not need to do anything else.
How much can I expect to receive?
The Government will provide vouchers worth £250 for each eligible child born on or after 1 September 2002. If you receive full child tax credit, the Government will provide an additional £250 for each eligible child.
When the child reaches the age of 7, the Government will provide an extra payment of £250. There may also be a further payment when the child reaches 13. The Government has still to confirm details of this.
Where will the money be invested?
The Ulster Bank child trust fund is designed to provide the child with a cash lump sum when they reach the age of 18. In order to do this, the Ulster Bank Child Trust Fund will offer customers a fund which invests in a wide range of assets that offers the potential of higher returns than a deposit fund. (You should, however, be aware that unlike a deposit account the value of the investment in the Ulster Bank Child Trust Fund can fall as well as rise).
The Ulster Bank Child Trust Fund has been designed to make the investment process as simple as possible, enabling you to invest more money when you are able to do so and to keep you informed of how the fund is progressing.
Is there a limit to the amount that can be invested in the Child Trust Fund?
Parents, family, friends and the child can contribute into the account as long as the total of all contributions do not exceed £1,200 a year. The annual £1,200 limit runs from your child's birthday in one year to the day before your child's birthday the next year. The smallest payment into the account is £10. To get a large amount of money available for the child's 18th birthday you should consider making additional payments to the child trust fund whenever possible. Further information is contained in the Application Pack which is available in Ulster Bank branches or by contacting 0845 601 0120.
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When can I have access to the money?
The Government has said that the money must stay in the account until your child reaches 18. Only then, will he or she be able to withdraw the money.
How will I know how much the fund is worth?
Each year, around the child's birthday, Ulster Bank will provide a statement detailing how much the fund is worth.
Will legal guardians receive the voucher?
Yes. As long as you have 'parental responsibility' and receive child benefit you can open the account. Special arrangements will be made for children in care.
Can I put the voucher into my bank account?
No. The Government rules state that you can only invest the voucher into a Child Trust Fund account.
Can I get the cash amount of the voucher now?
No. The Government has stated that the voucher must be invested in a Child Trust Fund and cannot be changed into cash.
Can the money be withdrawn at any time?
No. The Government has said that the money must stay in the account until your child reaches 18. Only then, will he or she be able to withdraw the money.