We all want to give our children the best possible start in life. So it´s a good idea to start saving for their future while they´re still young.
The Abbey Child Trust Fund is an easy and effective way of saving for the years ahead. It´s a flexible, easy to manage account that can make a really big difference to your child´s future.
Its a long-term savings and investment account introduced by the Government to encourage parents to save for their children. When you register to receive Child Benefit you’ll receive a voucher worth at least £250 to use to open a Child Trust Fund account for your child.
The account belongs to your child and only they can access the money - and only when they turn 18. The Abbey Child Trust Fund is linked to the stockmarket so the investment has potential to grow well over the longer term but please note that the value of investments can fall as well as rise so your child could get back less than the amount invested.
Although tax rules may change in the future, the returns are currently free from income and capital gains tax.
*Only children with a household income below the Child Tax Credit income threshold (£15,575 for 2008/9) will qualify for these payments
The Government contributions are a great start, but to make a really big difference you can invest regular additional amounts every month or make occasional one-off payments throughout the 18 year account period. Remember, once money has been paid in, no-one can access it apart from your child, and only when they turn 18. The money in a CTF does not affect family benefit and tax credits.
Contributing to your CTF is easy. You can make your payments by direct debit, cheque, telephone or internet banking.
The good news is anyone can do it. Mum, Dad, grandparents or other friends and relatives can all contribute up to £1,200 a year between them.(The account year ends on the day before your child’s birthday.)
Each year, Family Investments will send your child a statement, so you can see how their account is performing. Or you can ring for an up-to-date valuation at any time. You can also manage the account online.
You can apply for the Abbey Child Trust Fund with Family Investments either online, in branch or by telephone.
> Pop into your local Abbey branch
> Call us to apply on 0800 032 7652 (Lines are open 9am – 7pm weekdays and 9am – 12 noon Saturdays. Calls may be monitored or recorded for training purposes.)
You can also add to an existing Abbey Child Trust Fund
> Add to your Abbey Child Trust Fund provided by Family Investments
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