Child Trust Fund guide
What is a Child Trust Fund?
The Child Trust Fund (CTF) is a long-term savings and investment account introduced by the government to encourage parents to save for their child's future. The scheme has now been withdrawn and no new Child Trust Fund accounts can be opened. CTFs were replaced with the introduction of Junior ISAs in November 2011. We don't offer Junior ISAs right now, but a guide is available for your information.
Will I (or my child) now be able to withdraw the money invested in my child’s CTF account?
No. The withdrawal of the scheme does not affect existing CTF accounts. Only the child can withdraw the money and only when they reach 18 years of age. You can however transfer to another CTF or Junior ISA . We don't offer Junior ISAs right now, but a guide is available for your information.
My child already has a Barclays Child Trust Fund provided by OneFamily 1 – what will happen to it?
This account will continue to operate as normal.
You, along with family and friends, may still contribute up to a combined total of £4,080 per annum into your child’s account. CTF years run from birthday to birthday (and not in line with tax years), therefore top ups can be made from now until the day before the child's next birthday. If the annual limit is not fully utilised it is not possible to carry over any unused amount into the following year. Remember, any money paid into the account belongs to the child. Only they will be able to access it, and only when they are aged 18. Top up now
Annual statements are no longer issued unless a top up has been made within a contribution year. Statements will be issued on a child’s 11th and 15th birthday irrespective of top ups. You can still track and manage your child’s account online using the OneFamily
Online Account Management
Who can I talk to for further information?
Call the OneFamily Customer Service team on 0344 8 920 920 2.
Can I add money to my child's account?
Yes. You and your relatives and friends can add up to £4,080 per annum between you. CTF years run from birthday to birthday (and not in line with tax years), therefore top ups can be made up to the maximum annual allowance until the day before the child's next birthday. If the annual limit is not fully utilised, it is not possible to carry over any unused amount into the following year. Any money paid in will remain there until the child is 18 years of age.
However, if you would like to save for your child but wish to have access to the money, you could open another type of account, such as the Barclays Children's Instant Saver . If you'd like to consider other investment opportunities, Barclays offers a range of savings, investment and protection products.
What will the Child Trust Fund account eventually be worth?
That depends on the type of Child Trust Fund account you have chosen and how it's affected by inflation, interest rates and stock market fluctuations. It also depends, of course, on how much additional money you put into the account. Up to date valuations can be obtained by accessing OneFamily Online Account Management or calling OneFamily Customer Services Team on 0344 8 920 920 1
Additional important information
The Barclays CTF is a Stakeholder CTF which means that it had to have some investment in shares. The investment is in a security called Prosper, a type of Corporate Bond, which is a loan to a company – in this case, Barclays Bank.
Prosper aims to achieve investment growth whilst protecting the account against significant falls in value by making sure that the protected unit price doesn’t fall below 80% of the highest ever unit price. Prosper is divided into two portions - an equity (shares) portion and a cash portion.
When the stock market fell in 2008/09, Prosper successfully protected the CTF savings from much of the fall. In simple terms it did this by putting more of the CTF in cash and less in the stock market. Due to stock market performance, the majority of Prosper has been invested in cash since 2008. We expect that between 20% and 50% will be invested in the equity portion of Prosper while the current economic climate continues. Current Barclays analysis indicates that growth prospects for Prosper are low and are likely to remain low for the immediate future.
For up to date information about how much of Prosper is invested in cash and how much is linked to the stock market, please contact OneFamily Customer Services Team on 0344 8 920 9201. You can also look at the Barclays CTF fact sheets on OneFamily's web site at https://www.onefamily.com/connect-with-us/fund-information/fund-factsheets/ for past performance and historic asset allocation.
What this means for CTF holders
Whilst the Prosper strategy means more protection for the CTF savings – as happened during the stock market falls of 2008/09 – it also reduces the fund’s ability to achieve growth.
In light of this information you may wish to revisit your reasons for choosing the Barclays CTF and consider if it remains appropriate for your child’s long-term needs.
Stay with the Barclays CTF account – If your priority is the protection against significant falls in your investment over its growth potential, then you don’t need to do anything and your child’s CTF account will remain a Barclays Child Trust Fund Account provided by OneFamily.
Transfer to another CTF provider – If you wish, you can transfer your CTF to another CTF or Junior ISA provider free of any charges by OneFamily. There are CTF providers who offer cash CTFs where your child’s money is protected but may not offer much growth potential. Alternatively, there are CTFs that invest in stocks and shares that have a higher growth potential but offer no protection from stock market falls. There may also be other types of CTF available. A list of CTF providers can be found at www.gov.uk/child-trust-funds To transfer to another CTF provider, you will need to contact your chosen provider. OneFamily also offer other CTFs. Please contact them if you would like further details.
Neither Barclays nor OneFamily provide financial advice. If you would like advice on whether the Barclays CTF remains suitable for your child’s needs, please seek independent financial advice. For help in locating a financial adviser in your area please visit www.unbiased.co.uk
Is it taxable?
Returns on CTF accounts are exempt from Income Tax and Capital Gains Tax. Your entitlement to other family benefit and tax credits isn't affected either. Remember, tax advantages depend on individual circumstances and may change in the future.
Are your details up to date?
Please ensure that your personal details are kept up to date with OneFamily, including your home address and e-mail address, so that OneFamily can communicate with you about your investment. You can do so by accessing OneFamily Online Account Management or calling OneFamily Customer Services Team on 0344 8 920 920 2
Barclays Child Trust Fund Important Information Booklet
If you would like to see a copy of the Barclays Child Trust Fund Important Information Booklet, please call the OneFamily Customer Service Team on 0344 8 920 920 2
1. OneFamily is a trading name of Family Equity Plan Limited (Co. No. 2208249), which is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales at 16-17 West Street, Brighton, East Sussex, BN1 2RL. The Barclays Child Trust Fund Account is provided by OneFamily. Neither Barclays nor OneFamily gives advice on the suitability of the Barclays Child Trust Fund Account. If you have any doubts you should seek professional financial advice.
2. To maintain a quality service, phone calls may be recorded and monitored. Calls to 0800 numbers are free from UK landlines and mobiles. Calls to 0344 numbers are charged at local rate and will normally be part of any inclusive minutes provided with phone packages, even when calling from a mobile. The actual cost will depend on your provider’s tariff. For more information, please contact your provider.
Calls to this HMRC (HM Revenue & Customs/Inland Revenue) telephone number are normally charged up to 12p per minute from landlines (plus a call set-up fee) and between 5p and 40p per minute from mobiles depending upon the mobile provider call package.