Child Trust Fund

Child Trust Funds were introduced by the Government to make saving for your child's future easier.

As new parents, you'll receive a voucher from the Government - you can then decide on where you'd like to invest it.

If you don't invest your child's voucher within a year, the Government will choose where to invest it. So act now to make sure the choice is yours.

Once you've used your voucher to open an account, you - and friends and relatives - can top up the account at any time with amounts of £10 or more, up to a maximum of £3,600 a year.

The fund will belong to your child and they will have access to the money when they are 18.

Under current tax law, any income from a Child Trust Fund will be paid free of tax. The income is simply reinvested, helping your savings to grow even faster.

Start savings when they're young, and by the time they reach 18, a Child Trust Fund could help your child:

• pay for their first car
• fund part of their college or university education
• help towards the deposit on their first home

Just as important, you'll be setting your child a good example by showing them that saving can help you to achieve your goals in life.

There are lots of good reasons for investing your Child Trust Fund voucher with NatWest. Here are just a few of them:

• The potential for higher returns - the funds are largely invested in the stock market, managed by experts to give more potential for growth. However, unlike a deposit account, the value of the investment in the NatWest Child Trust Fund can fall as well as rise, and profits are not guaranteed
• Reduced risks, compared to investing solely in shares - When your child turns 13, we gradually move the money in your child's account into lower risk investments This helps to protect any gains their investment has made
• Capped charges - the annual management charge is capped at 1.5%, and there are no up-front charges. In other words, more of the money can be invested in your child's future
• Less for the tax man - under current tax law, all the growth in a Child Trust Fund is free of income and capital gains tax
• Top up your investment - why not save regularly with a Direct Debit? Or, you and your friends or relatives can make additional investments from as little as £10 a time, up to a limit of £3,600 a year

You should download and review the product brochure (PDF, 971KB) before deciding if this is the right product for your child.

• Will my child receive a Child Trust Fund voucher?
• How do I get the voucher?
• When can my child have access to the money?
• How will I know how much the fund is worth?
• Will legal guardians receive the voucher?
• Can I cash the voucher, or put it into my bank account?

A. If you are over age 16, or have parental responsibility for a child living in the UK; born on or after 1 September 2002 until 31st December 2010 and are eligible for Child Benefit, you will receive a voucher. You can use the voucher to open a Child Trust Fund account.

A. If you receive Child Benefit, you'll automatically receive a voucher for each child born on or after 1 September 2002 until 31st December 2010. For children born after the 31st December 2010, government vouchers will cease. You do not need to make a claim for the voucher.

A. The money must stay in the account until your child reaches 18. Only then will he or she be able to withdraw the money.

A. Each year, around your child's birthday, we'll provide a statement detailing how much the fund is worth.

A. Yes. As long as you have parental responsibility and receive Child Benefit, you can open the account. There are special arrangements for children in care.

A. No. You can only invest the voucher in a Child Trust Fund account.