Jargon Buster
Or to put it simply ... some of the terms explained in plain English
Child Trust Fund
The Government provides a payment of £250 to be invested on behalf of children born on after 1 September 2002 (or £500 if they qualify for the full Child Tax Credit). The Child Trust Fund payment is issued as a voucher sent to parents or legal guardians. Vouchers have to be invested into an account set up in the child's name (a Child Trust Fund). Learn about the Child Trust Fund Scheme.
Contributions
You, your family and friends can make additional contributions to the Ethical Child Trust Fund - but the total paid in by everyone must not exceed £1,200 a year. These contributions can be either lump sum payments or regular Direct Debits.
When the child turns seven, the Government pays a further £250 (or £500 for tax credit families) to be invested in the Fund.
Direct Debits
An easy way for you, your child's grandparents, other relatives and friends to make regular monthly payments into your Ethical Child Trust Fund. Payments are transferred direct from a bank or building society account. Pay as much or as little as you wish (the total paid in by everyone must not exceed £1,200 a year) - from just £5 a month.
