A Child Trust Fund is a savings and investment account for children. Children born on or after 1st September 2002 will receive a £250 voucher to start their account. The account belongs to the child and can’t be touched until they turn 18, so that children have some money behind them to start their adult life.
Payments or contributions can be made up to a maximum of £1,200 per 12 month period (starting on the birthday of the child), excluding the voucher amount. Interest and capital growth will be earned tax-free. Additional deposits can be made by parents, grandparents or anyone else.