Established 1863

Mon-Fri 9:00-16:30

01254 222 700

info@redroseassurance.co.uk

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Child Trust Fund

Our Child Trust Fund allows investments to be made for children until they are 18. It is a very flexible way to save – anyone can contribute regular premiums from just £10 per month and add lump sums at any time.

The Child Trust Fund is a historical government backed savings scheme for children born between 1 January 2002 and 2 January 2011. Children born after this date are eligible for the Junior ISA which replaced the government CTF scheme.


Main Product Features

  • Flexible

    Anyone can pay in to the CTF – parents, grandparents, family friends and even the child!

    There is no set premium – you can pay in regularly using direct debit and / or invest lump sums.

    You can change the amount of a direct debit and stop paying at any time.

    You can pay in occasional lump sums via BACS or cheque.

    You can transfer a Child Trust Fund from other providers to our CTF or Junior ISA.

    You can transfer your Red Rose CTF into our Junior ISA or to another provider.

  • Accessible at age 18

    The CTF helps families to build up a lump sum that is available when the child is 18. No access is available before then.

  • Tax free

    Under current legislation there is no income or capital gains tax for you or the child to pay on the proceeds when the child is 18*.

  • Investment

    The CTF invests in the Legal and General FTSE All-Share Index Tracker Fund. To learn more about this fund click HERE.

FAQs

Can I transfer a CTF into a Junior ISA?
Yes. This is a very simple process. Click here for an application form.
Do I have a choice of Junior ISA Funds?
Yes. We offer a modern Sustainable Ethical Investment Fund, a Shariah Fund and a traditional With-profits Fund. Please click here to see the ISA options.
Can I check the value of my JISA online?
Yes. We offer a simple and secure online valuation which you can access at any time.

Things to consider

You will find more information about the Child Trust Fund in the key features document and below are some important points that we want you to be aware of:

  • This is a medium to long term investment (5 years or more) and the proceeds cannot be accessed until the child is 18, although it can be transferred to another provider at any time.
  • The CTF is a stock market based investment and the value will depend upon future investment performance. You could get back less than you have invested.
  • The annual management charge is 1.5%. There is an annual maximum limit on contributions set by the Government (currently £9,000).
  • Inflation will have an effect on the future purchasing value of the CTF.
  • * Tax will have been paid on the underlying fund and HMRC could change the tax status of Child Trust funds in the future.
Child Trust Fund
Enquiries

Product Comparison Table

Product
Children's Savings Plan

Child Trust Fund

Junior ISAs
Min prem £5 £10 £50 initial
then £10pm
Max Prem £25
(a taxable version is available if a higher premium is required)
£9,000
for the current tax year
£9,000
for the current tax year
Min age at outset Birth Born between 1 Sept 2002 and 2 Jan 2011 Born before Sept 2002 and still <18  or after 3 Jan 2011
Max age at outset 11 See above Born before Sept 2002 and still <18  or after 3 Jan 2011
Min term (years) 10
(must be 16 or older when proceeds taken)
None
but should be considered a medium to long term plan (5 years or more)
None
but should be considered a medium to long term plan (5 years or more)
Max term (years) 30 To age 18 To age 18
when proceeds can be taken, or it becomes an 'adult' ISA
Fixed term Yes No
but see above
No
but see above
Flexible contributions No Yes
can add lump sums, amend or stop regular payments and start again later
Yes
can add lump sums, amend or stop regular payments and start again later
Life cover Sum assured plus all bonuses added to date of death 101% of the CTF value at date of death 101% of the ISA value at date of death
Transferable No Yes
can be transferred from or to another provider
Yes
can be transferred from or to another provider