Child Trust Fund

The Child Trust Fund (CTF) is a Government initiative, designed to encourage both parents and children to save or invest tax-efficiently. It's available to children born between 1 September 2002 and 31 December 2010 and it aims to ensure that children have some money behind them to help make the transition into adult life and when they reach 18.

For each eligible child, HM Revenue & Customs (HMRC) issue a voucher. This is used to open the account in your child's name. With effect from 1 January 2011 no new Child Trust Fund vouchers will be issued,. Those with existing vouchers will have until the expiry date shown on their voucher to open a Child Trust Fund. However, Nationwide offer alternative options to save or invest for your childs future.

There are three types of Child Trust Fund (CTF); a cash fund where the money is held in a traditional building society account, an equity stakeholder fund where the money is held in a unit trust and when your child is 13, the money is gradually moved to lower risk investments, and a share account where your child’s money is invested in companies’ shares, so it grows if those shares do well. Unlike the stakeholder account, money isn’t moved into lower risk investments

Nationwide offers both the cash fund and the equity stakeholder fund. To open a CTF account you must choose either cash or equity stakeholder CTF. The equity CTF we offer is provided by Legal & General.

For more information check out the What is a CTF? page or read the Key features document.