Below is a list of questions that are answered in this section.
Questions
Can I open a Child Trust Fund (CTF) account over the phone or internet?
Can I open more than one CTF account and spread the money between different types of account?
What happens if I don’t open a CTF account?
Why will HM Revenue & Customs open an account for my child if I don’t want one?
What happens if I don’t have a bank account?
What is a Basic Bank Account?
Answers
Q. Can I open an account over the phone or Internet?
A. Many providers will allow you to open a CTF account over the phone or Internet. The provider will let you know whether or not they need you to send the voucher in to them.
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Q. Can I open more than one CTF account and spread the money between different types of account?
A. No, each child has only one CTF account. But there are different CTF accounts so you will be able to choose the type of account you think best.
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Q. What happens if I don’t open a CTF account?
A. If you don’t open a CTF account before the expiry date on the voucher then HM Revenue & Customs (HMRC) will open one for your child. But remember, the sooner you open an account, the sooner your child’s money has the chance to grow. It is best that you choose the account that you believe best meets your child’s needs.
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Q. Why will HM Revenue & Customs (HMRC) open an account for my child if I don’t want one?
A. The CTF has been introduced to ensure that all children in future have a financial asset at the start of their adult life. The Government does not believe that it is fair for some children to miss out on their entitlement to a CTF account. It is for the child to decide at age 18 when they reach adulthood and the account matures if they wish to use the assets in the account. So if you have not used the voucher before it expires, HMRC will open a stakeholder CTF account for your child and tell you which provider the account has been opened with and that you are able to change the account to another type of account or provider if you wish.
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Q. What happens if I don’t have a bank account?
A. You don’t need to have a bank account yourself to open a CTF account for your child.
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Q. What is a Basic Bank Account?
A. Even if you've never had a bank account before, a Basic Bank Account might be appropriate for you.
Basic Bank Accounts share many of the facilities of a current account. They can receive payments in cash, or from other sources and bills can be paid by Direct Debit or standing order. There are no cheques and no overdraft facilities so you can only spend money if there is enough in your account. Basic Bank Accounts come with different names and are offered by a number of financial providers, but they all have similar features.
Cash can be withdrawn from cash machines and in some cases over the counter of the bank or building society itself or at Post Offices.
People with a poor credit history can usually open Basic Bank Accounts.
The Financial Services Agency publishes a guide to these accounts.
Basic bank account PDF
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