Cash Child Trust Fund

How it works

• Your child's money is invested in a competitive savings account - rates up to 2.10% AER* including bonus (1.10% AER excluding bonus)
• If you pay in £240 or more each year (excluding Government contributions) the Fund will qualify for an additional interest bonus
• Interest, plus any bonus, is credited every year
• Your child can access the money in full and without penalty at age 18
• No tax to pay

Key benefits

• A competitive rate of interest
• Capital is secure
• There are no charges
• It's tax-free
• It's flexible, so you can add to the account as and when it suits you, subject to annual allowances**
• You receive regular annual statements showing how much has been saved and the interest earned

Rate guarantee applies to the AER including the conditional bonus. Any changes to the cash CTF interest rate will take effect within one month of a Bank of England announcement.

Paying money in

Remember that you, your family or friends can all pay into your child's account, up to a total of £3,600 each year. You can do this by setting up a regular standing order, in branch by cash or cheque, or by direct transfers from other Nationwide accounts. Monies paid into the CTF cannot be returned to the person making the contribution.

Any person making a contribution to a CTF should appreciate that if their contribution causes the account to go over the £3,600 limit and this overpayment cannot be returned to them, a cheque made payable to your child will be sent to the registered contact.

We will send you full details about how you can pay into your child's fund, along with information for your family and friends, in your Nationwide Child Trust Fund welcome pack.

Please note that we cannot accept any additional payments until the cancellation period has ended.

Taking money out

No one can withdraw any money until your child is 18, and then only your child can access the money. You can however, transfer the Cash Child Trust Fund to an Equity Stakeholder Child Trust Fund or to another CTF provider if you wish.

Keeping track

We'll send an annual statement shortly after your child's birthday. The statement will show how much has been saved and how much interest your child has earned.

You and your child can also check the balance online. Simply register for internet banking at nationwide.co.uk – the balance will be displayed when you sign-on.

Interest payments

Interest is paid tax-free, and is added to your child's account on their birthday. Plus, if you've paid in £240 or more during the year, the Fund will receive an extra interest bonus.

Interest added to the account will not affect the annual allowances – so you can still deposit up to £3,600 each year. As the account is owned by your child, there's no further income tax to pay on the interest earned. Child Trust Fund interest is credited free of personal income tax.