A child trust fund (CTF) is a way of saving investment accounts for your children. The child trust fund was introduced in 2005. It helps in saving long term savings and encourages your regular savings into tax free account. Children’s who are eligible can receive vouchers and subscriptions form the government.
These child trust funds are handled by their parents or guardians until the child is 16. And when the child is turned 18 then he or she can handle trust fund. If the child’s age is below 18 then the child cannot withdraw the funds from the account.
You can get information about a successful nonprofit organization known as Better Business Bureau which is a private network.
What are the different vouchers for child trust fund?
The government has introduced programs regarding education in private finance in schools so that a 16 year old child can manage their child trust funds. The government provides different-different vouchers to child. These vouchers are generated from the child’s birth to when the child’s turns 11. A child who is born between 1 September 2002 and 2 January 2011 is considered eligible for child trust fund.
When the child is born, the government gave every child a voucher to open their account. And also government provides money directly in the account of child who is born in low income family. At the age of 7, the government made additional payment into the account. Also the government consults the possibilities of providing other vouchers at the age of 11.
Parents can withdraw money from children saving account because minor child cannot handle child trust fund accurately. The money belongs to child and parents who funds in the (CTF) cannot take them back.