MBS Cash Child Trust Fund - Summary Box & Product Details
Monmouthshire Building Society Cash Child Trust Fund (Non stakeholder)
Summary Box - Key Product Information
| Account Name | Child Trust Fund |
| Interest rates (AERs) | • The interest rate is variable – please click here to view the current interest rate |
| Tax Status | • Interest will be exempt from UK income tax providing the Child Trust Fund terms have been fully met |
| Conditions for bonus payment | • There is no bonus with this account |
| Withdrawal arrangements | • No withdrawals permitted – all money paid in, along with all interest earned may not be withdrawn until the child reaches 18 years of age |
| Access | • You can manage your account in branch, by post or online (if registered with our ‘My Accounts’ service) |
Additional Product Information
- Available to eligible children only
- Save up to £3,600 per subscription year
- The child will have access to the money from their 18th birthday
- You can add to your savings at any time by cash, cheque or direct debit
How much will my child receive from the government?
- Every child who is eligible will receive a voucher worth £50* from the Government.
- This amount could rise for children in families who receive a full child tax credit.
- The Government will advise such families of any additional payments on top of the £50* directly.
*Parents of eligible children for whom Child Benefit is first paid from 3 August 2010 will now receive a £50 voucher from the government (previously £250) to start a Child Trust Fund account for their child. Typically children born on or after 2 August will receive a £50 voucher.
Please note that any child born from 1st January 2011 onwards will not be eligible for a Child Trust Fund.
Any child born before 1st January 2011, for whom a Child Trust Fund is opened, will continue to benefit from tax-free investment growth and no withdrawals will be possible until the child reaches age 18.
Can more savings be added to the account?
- Yes. Parents, grandparents, or anyone else can all pay money into a Child Trust Fund.
- However, the total additional amount that can be paid into the account each subscription year is currently £3,600.
- The subscription year ends the day before the child’s next birthday.
- This amount is on top of the payment made by the Government when the child is born, and any other subsequent Government payments.
How can I open a Child Trust Fund?
Click here to open a Child Trust Fund
Is there a deadline for using the Child Trust Fund voucher?
- You can still use the voucher up to its expiry date to open a Child Trust Fund for your child. If you fail to do so then HM Revenue & Customs will open an account on your child’s behalf. The account will receive a Government payment at the level that applied when they first had Child Benefit paid for them – this is the amount shown on the voucher you received.
How can I pay money in?
Adding to the account is easy because you can save by cash, cheque, standing order or regular credits by direct debit.
Cash or Cheque
- Funds can be added by calling in to any of our branch or agency offices with your passbook and deposit.
Direct Debit or Standing Order
- You can save direct from a suitable account with your bank or another building society. Please refer to our Direct Debit leaflet for more information.
- You can save through a standing order from your bank account.
Can withdrawals be made from the account?
- No. Money paid in, along with all interest earned by a Child Trust Fund may not be withdrawn until the child is 18.
- The child will have access to the money from their 18th birthday.
- As the account is set up for the benefit of the child, you as the Registered Contact will have no access to the money at any time.
- All money paid into the account is treated as a 'gift' and cannot be withdrawn until the child reaches 18 years of age. (Special arrangements apply in the unlikely event of a child's death or terminal illness).
- If you wish to save for a child, and believe you may require access to these additional savings prior to the child's 18th birthday, please ask a member of staff who will provide you with details of an alternative account which may better suit your needs.
- Please note however, that any government vouchers can only be paid into a CTF.
What is the interest rate?
- The interest rate is variable.
- For details of current rates, click here.
How is the interest calculated and when is it paid?
- Interest on the balance will be calculated on a daily basis, and will be credited to the account annually on the child's birthday.
- Interest cannot be paid to another account.
Is tax payable on the interest?
- No. There is no tax to pay on any interest that has been added to your Child Trust Fund account.
- However, there is no guarantee that this favourable tax treatment will be maintained in the future.
How can I cancel my application?
- This is a branch based Child Trust Fund, which is opened in person and is not a distance contract. Therefore, once the account is open, you have no cancellation rights, although you can transfer your account to another provider.
Can I transfer my Monmouthshire Building Society Child Trust Fund to another CTF provider?
- You can transfer your CTF to a different provider at any time free of charge, provided that your chosen new account provider agrees to the transfer.
- Subject to the above, on your written instruction and within any time limit specified by you (subject to a minimum period of 30 days), we will transfer all of your CTF to the new provider.
- In addition, where transfers from a different account provider are accepted by us, these will also be free of charge.
How can I keep track of how my child CTF is doing?
- A statement will be sent to the child ‘care of’ the registered contact each year following the child's birthday, showing how much has been paid into the account, any interest earned, and what the current value is.
- In addition, the passbook will be updated each time you visit one of our branch offices.
Will my child receive Government payments when they turn 7?
- If your child reaches their 7th birthday after 31 July 2010, there will be no Government payments into Child Trust Fund accounts when the child reaches age 7.
- Eligible children that turn 7 on or before 31 July 2010 will still be eligible for Government payments made at age 7.
What happens when my child reaches 18?
- There is no penalty or charge for closing the CTF when the child reaches 18 and no notice period is required.
- Upon the child turning 18 we will transfer the CTF to one of our instant access accounts (or equivalent) available at that time.
- We will send you further details beforehand, including any identification required.
What if I change my mind?
- Once you open a Monmouthshire Building Society Cash Child Trust Fund, any money deposited will be treated as a gift to the child and cannot be taken out until the child reaches 18 years of age, at which point only the child will be able to withdraw it.
- If you already have a Cash Child Trust Fund with another provider, you can transfer it to us if you so wish. Please use our CTF Transfer Form (See 'opening a CTF' at the bottom of this page) alternatively click here.
It is important that you read the 'General Terms and Conditions for Savings Accounts' and the 'Child Trust Fund Terms and Conditions' before deciding to open an account.
