Key facts on the Child Trust Fund

a long-term savings and investment account for children
neither the parent nor the child will pay tax on income and gains on the account
parents receive a £250 voucher to start each child’s account
children in families receiving Child Tax Credit (CTC), with a household income not greater than the CTC threshold of £15,575 for 2008/09 will receive an extra payment of £250

For previous years' CTC thresholds use this link
a total of £1,200 each year can be saved in the account by parents, family or friends
money cannot be taken out of the CTF account once it has been put in – when the child is 18 they will be able to decide how to use the money
children can start to make decisions about how the money is managed when they are 16
the Government will make a further contribution when your child is seven - all eligible children will receive a further payment of £250 into their CTF account at age 7, with children in lower income families receiving an additional £250. These payments will be paid around the child's 7th birthday direct into their account
not just one type of CTF account – parents choose from 3 types of accounts they want for their child
at any time the account can be moved to a different provider or the type of account can be changed
the CTF account will not affect any benefits or Tax Credits you receive
after 12 months, the voucher will expire and the Government will open a Stakeholder Account on the child's behalf. The account provider will be allocated at random and parents will receive a letter telling them where their child's money has been invested