Child Trust Funds - Which type?

"What accounts are available?"

What accounts are available?

Leeds City Credit Union can only offer TYPE 1: CASH SAVING CTF

PLEASE NOTE: Any investment in stocks and shares can mean

you may get back less than you paid in.

Leeds City Credit Union does not invest in stocks and shares

There are three types of CTF account available.  See below for a comparison of the 3 types of CTF account:

1.   A cash savings CTF

..... is similar to a bank or building society savings account that earns interest (except that your child cannot get at the money until he or she is 18). As with deposit accounts, there are no charges deducted from the value of your fund. The rate of interest is declared by Board of Directors. 

2.   A stakeholder CTF (Investment)

The Government has set conditions for stakeholder CTFs.

• The CTF provider must invest part of the CTF account directly or indirectly in stocks and shares spread across a range of investments with the aim of spreading the risk.
• Restrictions on the type of investments.
• The charges the CTF provider makes are limited to a maximum 1.5% of the value in the account per annum.
• Providers cannot require additional contributions to be more than £10.

3.   A non-stakeholder CTF (investment)

This type of account also invests in stocks and shares but does not have to meet the government’s conditions for stakeholder CTFs  This type of account does not have such tight restrictions on the type of investments. Charges and additional contributions, may vary from those for stakeholder CTFs.

To apply for a Leeds City Credit Union CASH ONLY CTF click here

To go to the official ’Child Trust Fund’ Web site click here - you will also be able to find a list of other Investment CTF providers

Leeds City Credit Union has teamed up with Engage Mutual Assurance who offer Stakeholder CTFs.  You should be aware that the value of Stakeholder accounts may go down as well as up. 

Click here to go to the web site of Engage the who offers Investment CTF’s