Child trust Fund
If your child was born on or after the 1st September 2002 and is awarded child benefit they qualify for a Child Trust Fund.
The Child Trust Fund is a simple way to save for your child, developed by the Government. The Child Trust Fund aims to provide every qualifying child a savings account with a useful sum of money in it by the time they reach the age of 18.
When your child reaches 18 the Child Trust Fund will mature and your child will be free to either reinvest their money or spend it as they choose. Some children might use the money to help finance further study, buy a car, or put it towards a deposit on a flat. Others may use it to travel.
The Government will kick start your child's account with the voucher that they will send you. They’ll also make a second payment when your child reaches 7 years of age. In addition to this, between you and your family you can add up to £1,200 per year to the fund.
You can put money into your child's account at any time. Why not consider making regular payments into the account? Just saving £5 or £10 a month could make a difference to the money your child will receive when they reach 18.
You might decide to set aside some of your child benefit to pay in. The money in the Child Trust Fund cannot be accessed until your child reaches 18 when the account matures.
We have teamed up with engage Mutual Assurance (engage) to bring you the stakeholder Child Trust Fund account.
You may think that children are expensive when they are young, but have you considered costs when they are older? Some of the things a Child Trust Fund could help meet the costs of are:
- University (costs around £8,800 a year‡)
- Driving lessons, leading to...
- Your child's first car
- Deposit for that all-important first house or flat.
engageMutual Assurance (engage) is a trading name of engage Mutual Funds Limited (eMFL) part of a leading UK mutual organisation.
engage provide protection and savings products that are designed specially for families, ensuring that they offer a combination of simplicity and value for money. They are therefore an ideal choice for the Scarborough Building Society to work with.
The equity-based stakeholder Child Trust Fund is offered by engage Mutual Funds Limited (eMFL), a wholly owned subsidiary of Homeowners Friendly Society Limited.
As a Government approved provider of Child Trust Fund accounts they are passionate about savings for children. Their objective is to give parents the tools to help them provide their children with a better start in life.
As this is a stock market-based investment its value can fall as well as rise. You should note that your child may get back less than has been paid in.
How do I apply for a Child Trust Fund?
Applying for a Stakeholder Child Trust Fund is easy; once you have recieved your voucher just follow one of the easy steps below:
- Visit www.engagemutualchildtrustfund.com
- Call engage on 0800 028 1050†
- Get an application pack from your nearest branch
Not received your child's voucher yet?
Don't worry, you can still apply now - engage will set up everything in advance, ready for you to send your vouchers to them.
Got your voucher already?
Then apply now - the sooner your child's account is open, the sooner the fund will have the potential to grow!
‡ Source: NUS press pack, 2005 - 2006.
Scarborough Building Society choose to introduce our customers to engage Mutual Funds Limited (eMFL) for the purpose of arranging stakeholder Child Trust Funds.
* The gross rate is the contractual rate of interest payable before the deduction of income tax at the rate specified by law. The net rate is the rate of interest which would be payable after allowing for the deduction of income tax at the specified rate (the net figures quoted assume liability at a tax level of 20% for illustrative purposes only).
** AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year. Please note that the account specific Terms and Conditions may preclude you from earning these rates.