Opening a Child Trust Fund account – a beginner's guide :Cross Stitch – Money, tax and benefits

Once you’ve got your Child Trust Fund (CTF) voucher, you need to choose the type of account you want and a provider to run it. Then you need to open the account as soon as possible. This step by step guide will help you get started.

You need to decide what type of account is best for your child. You can choose from different types of CTF account, depending on how you want to invest the money.

You can’t use the account you have your Child Benefit paid into.

Try to look at a number of CTF accounts from different providers and distributors before you decide where to open your child’s account. Think about:

fees for running the account
if you have to put money into the account
if there’s a minimum amount that has to be paid in
the likely return on the money you are investing
if you can manage the account by telephone, online or in person
how other people can pay into the account
how you can check the amount of money in the account

Step three – open the account

You can open an account if one of the following applies:

you are the person who was sent the voucher
you don’t get Child Benefit for the child, but have ‘parental responsibility’ for them

Parental responsibility can apply to:

parents
step-parents
adoptive parents – but only when the adoption is finalised
guardians

This does not include:

grandparents or other relatives – unless they are the child’s legal guardian
foster parents

If nobody has parental responsibility, HMRC will open an account for the child.

If someone with parental responsibility becomes available at a later date, they can then apply to manage the account.

To open an account, you may have to do one of the following:

fill in the provider’s application form by hand
apply over the telephone or internet

If you’re not already a customer with the provider, you might have to prove your identity. For example you may need to provide a valid passport, driving licence or utility bill.

There’s no need for you to go through a credit check to set up the account. This is because the account belongs to your child, not you.

There may be a cooling off period before the account is set up. This allows you to change your mind and open a different account without any penalty.

The account won’t be opened until the end of the cooling off period. Money can’t be paid in until then.

Check with your provider:

how long the cooling off period is
when you’re likely to see the money in the account

Once you’ve opened the account you:

become the main point of contact for the account – called the ‘registered contact’
are responsible for managing the account until your child is 16
can change to another account or provider at any time

If you don’t open a CTF account before the expiry date on the voucher, HMRC will open one for your child. This will be an account known as a ‘Stakeholder’ account. You can find out more about this type of account by going to link ‘Help with choosing a Child Trust Fund account’ below.

HMRC will write to whoever gets Child Benefit for your child telling them where the account is held. They will also let you know that someone with parental responsibility will need to become the registered contact for the account.

If you become the registered contact, you can change the account to another type of account or provider at any time.

Opening a Child Trust Fund account – a beginner's guide :Cross Stitch – Money, tax and benefits

Step three – open the account

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