It's up to you to decide how much you put into a child's Child Trust Fund (CTF) account. The maximum that can be paid into a CTF account in any year (between the child's birthdays) is £1,200 from all contributors.
Even small payments will make a difference in the long run allowing the money in the account to grow into a sizeable amount over the 18 years.
If a child has a stakeholder account, the provider has to accept a payment of £10 or more (this doesn't have to be a regular payment) but some may accept less - it is best to check with the provider. Payments can be made into a stakeholder account by cheque, standing order, direct debit and direct credit.
There are no rules about minimum contributions for other types of account - this is something to check with the provider. It is also worth checking whether the provider has any rules about how payments are made, e.g. whether by cheque, cash or both.
The maximum amount that can be put into the account each year is £1200. The start date for each year is your child’s birthday, except in the first year when the start date is the day the account is opened and the end date is the day before your child’s next birthday.
When you first apply to open an account there may be a cooling off period before the account opening process is completed. This gives you the chance to change your mind and open a different account without penalty. But it also means that the account is not opened until the end of the cooling off period and so money cannot be paid in until then. So if you delay starting the account opening process, you could lose one year’s £1200 contribution limit if the cooling off period ends after your child’s birthday. You will need to check the exact details with your chosen provider.
If the full £1,200 limit is not used in one year, the unused amount can't be carried forward to the following year. For example, if you contribute £900 to the account in one year, you can't add £1,500 the next year to make up the shortfall.
If you need tips on how to save the link below will give you some ideas.
Top tips for saving
