• Helping you to create a nest egg for your child

    Through an F&C Child Trust Fund, you can save for your child tax-efficiently over the long-term. Our Child Trust Fund (CTF) gives you access to the long-term potential of the stock market through our investment trust range via a Shares Child Trust Fund or in a tracker fund via a Stakeholder CTF. A new CTF cannot be opened but you can transfer an existing Child Trust Fund to F&C.

    Potential Benefits

    • Long-term potential of stock market investing - take advantage of the benefits that investing in the stock market can offer. Whilst capital isn't guaranteed as it is in a cash account, historically equities have significantly outperformed cash over the long term.
    • Access to our range of 12 investment trusts - our investment trusts invest in a range of asset types including; equities, bonds, property and private equity, both in the UK and globally. These investments trusts all benefit from the skills and expertise of our team of fund managers.
    • All the family can participate - Grandparents, godparents, friends and relatives can all contribute to your little one's savings pot. Great for birthday or Christmas gifts.
    • Flexible savings options – Give your child a financial head start from as little as £10 per month in the Stakeholder Child Trust Fund or £25 per month in the Shares Child Trust Fund. You can also invest a lump sum up to the maximum limits and top up your child's account at any time.
    • Tax-efficient savings – Neither you nor your child will pay tax on income or capital gains in the F&C Child Trust Fund, so your child can make more of the money you’ve saved. The annual subscription limit is £4,000 in-line with the Junior ISA.
    • Transferring is easy - Your child's Child Trust Fund may be in a cash account earning little interest. Transferring to the F&C Child Trust Fund is simple all you need to do is complete the Child Trust Fund transfer application form.

    Risks to take into consideration

    • Price volatility - the value of shares and the income from them is not guaranteed and can fall as well as rise due to stock market movements. When you sell your shares, you might get back less than you originally invested.
    • Exchange rate risk - changes in the rates of exchange between currencies may have an adverse effect on the value, price or income of investments.
    • Gearing - investment trusts can borrow money (gearing), which can then be used to make further investments. They can also invest in instruments such as warrants or derivatives, where a small movement in the value or price of the underlying right or asset results in a larger movement in the value or price of the instrument. In a rising market, this ‘gearing’ can enhance returns to shareholders. Correspondingly, if the market falls, losses may be greater.
    • Insufficient income - where the income earned by an investment trust is insufficient to cover its charges and expenses, the balance may be charged to capital, which will to that extent, constrain capital growth.
    • Investment needs - if you start an investment in order to fund a specific need, for example to pay school fees, if you then do not maintain your contributions or your investment does not grow sufficiently, you may not achieve your target. If you have any doubts about the suitability of this investment, please consult your financial adviser.

    The value of shares and the income from them is not guaranteed and can fall as well as rise due to stock market movements. When you sell your shares, you might get back less than you originally invested. Changes in rates of exchange may have an adverse effect on the value, price or income of investments. If you have any doubts about the suitability of this investment, please consult your financial adviser.

     Getting started

    Transferring the Child Trust Fund is quick and straightforward. Simply complete an application form.

    • Decide on the type of Child Trust Fund you want to transfer to
      Select either the Stakeholder or Shares Child Trust Fund.
    • Choose your investment trusts
      Decide which of our investment trusts you’d like into invest.
    • Decide on how much you want to invest
      You can invest monthly, in lump sums or a combination of both.
    • Make sure you’re happy to go ahead
      Read the Key Features and Terms & Conditions for our products – make sure that you understand them including any charges that apply to the products and are happy to go ahead.

    What is the Child Trust Fund?

    The Child Trust Fund was launched by the government as a long-term savings account for children born between 1 September 2002 and 2 January 2011.

    Child Trust Funds benefited from a government contribution in the form of a voucher (typically £250) but these are no longer being issued.

    If you didn’t invest the voucher when you received it, the government would have invested it for you, most likely in a cash based account. If your child is eligible, then you can transfer your child’s existing account to us.

    The Child Trust Fund is opened in your child's name and the investment will be passed to the child on their 18th birthday.

    There is a maximum investment limit of £4,000 for the 2014/2015 tax year.

    No withdrawals can be made from a Child Trust Fund until the child turns 18.

      Child Trust Fund Junior ISA
    Who is eligible Children born 1 September 2002 to 2 January 2011 Children born before September 2002 and from 3 January 2011
    Government contribution Yes No
    Tax-efficient Yes Yes
    Maximum investment limit* £4,000 £4,000
    Types of accounts Stakeholder or Shares Cash or Stocks and Shares
    Withdrawals permitted No No
    Set up in the child's name Yes Yes
    Family contributions available Yes Yes
    When can the money be accessed On child's 18th birthday On child's 18th birthday
    What happens to the account at age 18 Investment ownership transferred to the child Converts to an adult ISA and can continue to remain invested

    The value of shares and the income from them is not guaranteed and can fall as well as rise due to stock market and currency movements. Yields are calculated on an historic basis using the actual dividends paid during a company's last financial year and the closing share price as at the end of the relevant month. Past performance is not a guide to future performance. Funds cannot be withdrawn until the child reaches 18. Tax can be a complicated area and much will depend on your individual circumstances, meaning it often makes sense to employ the services of a professional financial adviser. All tax rules may change in the future. When you sell your shares, you might get back less than you originally invested.

  • Any questions?

    Call us on:
    0800 136 420

    Lines open 8.30am to 5.30pm weekdays, calls may be recorded.


  • Junior ISA

  • Investing for Children part 1

  • Investing for Children part 2

Past performance is not a guide to future results. The value of investments can go down as well as up.

Information in this section of the Website is directed solely at persons who are located in the UK and can be categorised as retail clients. Nothing on this website is, or is intended to be, an offer, advice, or an invitation, to buy or sell any investments. Please read our full terms and conditions before proceeding further with any investment product referred to on this website. This website is not suitable for everyone, and if you are at all unsure whether an investment product referenced on this website will meet your individual needs, please seek advice before proceeding further with such product.

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