If your child was born between the dates above, the likelihood is that they have a pot of money sitting in a Child Trust Fund (CTF) account somewhere.
The Government allocated between £50 and £250 (up to £500 for low income families) as an initial deposit (depending on your child’s date of birth) and in some cases even made further top-up payments at age 7. So, there could be a pot of over £1,000 waiting for your child, without you even knowing about it!
There are lots of parents out there who are not aware about their child’s government funded CTF.
Initially the government issued vouchers to parents to let them have their own choice of where to set them up, in many cases they were received but forgotten about and in some cases due to change of circumstances people didn’t receive the original communication at all. In these cases, so the child didn’t miss out on their allowance, the Government decided to open the policies for them and these accounts were allocated to a selected panel of providers all over the UK, including Sheffield Mutual.
Whilst the Government contributions have now ceased, the policies still remain in force and will do so until they mature when the child reaches age 18. Currently (as at 07/09/2016) you can contribute up to £4,080 in-between each birthday for your child so you have the potential to build up quite a nice tax-free* lump sum for their 18th birthday.
If you don’t know where your child’s CTF is held,you can find out by submitting your details here:- http://www.hmrc.gov.uk/tools/childtrustfundclaim/ctfaccount.htm
If you locate your child’s CTF but aren’t happy with where it has been placed, you can transfer to another CTF provider or, you can now also transfer to a Junior ISA (JISA). Sheffield Mutual accepts both CTF to JISA / CTF to CTF transfers and you can find out more here :- http://www.sheffieldmutual.com/childrens-savings
This blog provides generic information and opinions of the writer and should not be relied upon for making investment decisions. No advice has been provided by Sheffield Mutual. If you are in any doubt as to whether a savings or investment plan is suitable for you, you should consider contacting a financial adviser for advice. If you do not have a financial adviser, you can get details of local financial advisers by visiting www.unbiased.co.uk or www.vouchedfor.co.uk . Advisers may charge for providing such advice and should confirm any costs beforehand. *Any reference to taxation is based on the writer’s understanding of current tax legislation and practice, which could change in the future.