A Child Trust Fund (CTF) is a tax-free savings account for children in the United Kingdom. It was introduced in 2002 by the government to encourage parents and guardians to save for their children’s future. CTFs are managed by banks, building societies, and credit unions, and parents or guardians can choose from a range of investment options.
There are a number of benefits to saving into a CTF. First, the money in a CTF is tax-free, which means that it can grow faster than money in a taxable savings account. Second, the government will make a contribution to the CTF of up to 1,000, depending on the child’s age and family income. Third, CTFs are flexible, and parents or guardians can withdraw money at any time.