Ethical Child Trust Fund

Frequently Asked Questions

• Government changes to the Child Trust Fund Scheme >>
  
• What if my child is not eligible?
• When Government contributions stop, will I be able to open a Child Trust Fund account for my child anyway (i.e. without a voucher)?
• I haven't yet received my Child Trust Fund voucher from the Government. Can I still apply for the Ethical Child Trust Fund?
• Can I apply online?
• How long do I have to choose a Child Trust Fund?
• What happens if I don't open a Child Trust Fund?
• I, or the Government, have/has already opened a Child Trust Fund. Can I transfer to the Foresters Friendly Society Ethical Child Trust Fund?
• How will the government make the extra payment at my child's seventh birthday?
• What makes this Child Trust Fund "ethical"?
• How do I make additional contributions to the Fund?
• Is there a limit on the amount of additional contributions?
• Can my child access the money in their Fund before they reach 18?
• How does the Ethical Child Trust Fund have the potential for growth?
• Can you tell me more about Stakeholder Child Trust Funds?

 

What if my child is not eligible? Back to Top

If your child was born before 1^st September 2002 or after 1 January 2011, they are not eligible for a Child Trust Fund, please see our Child Tax Exempt Savings Plan to give them a financial head start too.

 

When Government contributions stop, will I be able to open a Child Trust Fund account for my child anyway (i.e. without a voucher)? Back to Top

The Government has announced that HMRC will no longer issue Child Trust Fund vouchers and it will not be possible to open a Child Trust Fund account (other than for those who have already received a voucher before this date).

 

I haven't yet received my Child Trust Fund voucher from the Government. Can I still apply for the Ethical Child Trust Fund? Back to Top

Yes, you can apply by post even if you are yet to receive your voucher. Download the application form and send it back to us, and we will set everything up ready for when you have received the voucher. Once you have your voucher you will need to send it to us.  Under the Government changes, Child Trust Fund vouchers already issued will continue to be valid up to their expiry date.

 

Can I apply online? Back to Top

Yes, once you have received your voucher you can apply online. All you will need is the unique reference number (URN) which is printed on the voucher. Apply now.

 

How long do I have to choose a Child Trust Fund? Back to Top

You must invest your Child Trust Fund voucher within 12 months. The earlier you invest your Child Trust Fund voucher - the more your Child Trust Fund has the potential to grow.  Under the Government changes, Child Trust Fund vouchers already issued will continue to be valid up to their expiry date.

 

What happens if I don't open a Child Trust Fund? Back to Top

If you don't invest your Child Trust Fund voucher within 12 months, the Government will choose a Fund on your child's behalf. The Government will confirm to you with which provider they have opened your Child Trust Fund.

 

I, or the Government, have/has already opened a Child Trust Fund. Can I transfer to the Foresters Friendly Society Ethical Child Trust Fund?
Back to Top

Yes - you can transfer from an existing Child Trust Fund to the Foresters Friendly Society Ethical Child Trust Fund. Transferring an existing Child Trust Fund is a simple process, which we can manage on your behalf. Please contact us for more information.

 

How will the government make the extra payment at my child's seventh birthday? Back to Top

Under the Government changes, contributions at age 7 will continue as normal until 1 August 2010.  The Government contributions at age 7 will then stop for children whose 7^th birthday falls after 31 July 2010.

Therefore, all eligible children born on or after 1 September 2002 will receive a further payment from the Government of £250 into their Child Trust Fund accounts for children who turn 7 before August 2010. Children in families who qualify for full Child Tax Credit with an income below the Child Tax Credit threshold on the child's 7th birthday will qualify for £500.

These payments will be made directly into the Child Trust Fund account. All accounts are registered with the Government so they will know where to make the payment.   The person claiming Child Benefit for the child will receive a letter from HM Revenue and Customs confirming the payment has been made.

To qualify the child must be:-

• in receipt of Child Benefit
• have a Child Trust Fund account and
• be living in the UK on their 7th birthday.

These payments from the Government will not count towards the annual £1,200 limit.

For more information on the Government contributions, please visit the Government's Child Trust Fund Website.

 

What makes this Child Trust Fund "ethical"? Back to Top

The Ethical Child Trust Fund avoids investing in companies that are considered to be harmful to the environment, people, animals or wildlife.

Our Ethical Child Trust Fund will exclude any company that is substantially involved in any of the following areas:

• Animal testing of cosmetics
• Gambling
• Pornography and adult films
• Tobacco

Or which fails to meet our required criteria including and regarding:

• Health and safety convictions
• Human rights
• Sustainable timber
• Water pollution

For further information, please see the Key Features Document.

 

How do I make additional contributions to the Fund? Back to Top

You can make additional contributions to the Fund - either by a lump sum payment each year and/or make regular contributions by Direct Debit.

The minimum lump sum payment is £50 - payable by cheque. The minimum regular payment is £5 per month - by Direct Debit. However, the total amount of additional contributions must not exceed £1,200 per year.

If you or anyone else wishes to add to the Fund, you/they should complete an Additional Contributions Form.

Download an Additional Contributions Form

 

Is there a limit on the amount of additional contributions? Back to Top

Yes. The total amount of additional contributions from all sources must not exceed £1,200 per year. It is the responsibility of the person opening the Fund to ensure that total contributions do not exceed £1,200 per year.

If you want to pay in more than £1,200 per year, our Child Tax Exempt Savings Plan can be taken out as well as a Child Trust Fund to further maximise the child's savings.

 

Can my child access the money in their Fund before they reach 18?
Back to Top

No. The Fund is designed to offer a financial head start when the child becomes an adult by providing a cash payment when they turn 18 years old.  Under the Government changes, this will remain the same - no withdrawals will be permitted until the child turns 18.

 

How does the Ethical Child Trust Fund have the potential for growth?
Back to Top

The Child Trust Fund voucher and any additional contributions are invested in the Foresters Friendly Society With Profits Fund. Annual bonuses and a possible final bonus may be added to the basic sum assured. Once added these bonuses cannot be taken away - helping to grow the value of the cash payment when the child turns 18. Bonuses will depend on the future investment performance and deductions of the With Profits Fund and how it is decided to distribute any profit.  The addition of bonuses is not guaranteed and it is possible that the Ethical Child Trust Fund might not receive any annual and/or final bonus.

 

Can you tell me more about Stakeholder Child Trust Funds? Back to Top

Foresters Friendly Society does not offer a Stakeholder Child Trust Fund, but has an arrangement with a partner Stakeholder Child Trust Fund provider.

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