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Child Trust Fund -
Cash Savings Account

Transfer an existing Child Trust Fund balance to Yorkshire in branch for a competitive, variable rate of tax-free interest.

Key features

  • Enjoy an introductory bonus rate of 0.70% for the first 12 months (a limited offer that may be withdrawn at any time)
  • Save up to £4,080 each account year, with parents, grandparents and friends all able to make deposits as well as you and your child
  • Receive a Passbook you can use to pay money in at any of our branches or agencies
  • Pay money in by standing order or by post if that’s easier
  • Add to your account when it suits you as there’s no minimum deposit required
  • Get a competitive, variable rate of tax-free interest, paid annually on the night before your child’s birthday (please note, interest cannot be paid into another account)
  • Receive statements annually - normally within 5 working days of the child’s birthday
  • Once your child turns 18 and we’ve verified their identity, they’ll get access to their funds via an easy-access account

2.75%

tax-free† p.a./AER* variable**,

including 0.70% bonus for 12 months

Summary Box

Account Name Child Trust Fund
What is the interest rate?

Current rates - Effective 02 September 2016

This account pays a variable** rate of interest. For the first 12 months after account transfer you receive a bonus of 0.70%.

Annual Interest with bonus
Tax-free† p.a. AER*
2.75% 2.75%
Annual Interest without bonus
Tax-free† p.a. AER*
2.05% 2.05%

Whether you need to pay tax is dependent on your own personal circumstances and so may be subject to change in the future.

† Tax-free means that Interest is not subject to income tax

* AER stands for the Annual Equivalent Rate and shows you what the interest rate would be if interest was paid and added each year. This will enable you to compare more easily the return you can expect from your savings over time.

** Variable rate of interest means that the interest rate payable on your account can change and can move both up and down.

 

Payment of interest

  • Interest is calculated daily on cleared balances
  • Annual interest is paid on the 31 December to the Child Trust Fund account.

Can Yorkshire Building Society change the interest rate?

We can make changes to the interest rate on this account for particular reasons. General Terms and Conditions (424 KB) 4 sets out those reasons and tells you how we will notify you of the changes.

What would be the estimated balance after 12 months based on a £1,000 deposit?

After 12 months your balance would be £1027.50

We have worked this out assuming a £1,000 deposit is made on account transfer, the bonus rate of 2.75% tax freeɫ/AER* is applied, no further deposits or withdrawals are made throughout the 12 months, the interest earned is added to the account and no changes made to the current interest rate

After a further 12 months your account balance would be £1048.56.

We have worked this out assuming, the non- bonus rate of 2.05% tax freeɫ/AER* is applied, no further deposits or withdrawals are made throughout the 12 months, the interest earned is added to the account and no changes made to the current interest rate.

This projection is provided for illustrative purposes only and does not take into account your individual circumstances.

How do I open and manage my account?

Eligibility

  • All children born between 1 September 2002 and 2 January 2011 inclusive, were eligible for a Child Trust Fund provided Child Benefit has been awarded to them. Only one account can be held per child.
  • The account can only be opened in the name of the child by a person with parental responsibility for that child.
  • The person opening the account will become the account’s “Registered Contact”. The child must apply to become the Registered Contact on their own behalf when they reach 16.

Account opening and management
Only transfer-ins of existing Child Trust Funds can be accepted in the following ways:

  • In a branch or at an agency
  • By calling 0345 1200 200 to request an application pack to be sent to you.

You will need details of your current Child Trust Fund account and provider.

The account can be managed in branch, at an agency or by post

Annual subscription limits are set by HMRC. Currently up to £4,080 can be paid into a Child Trust Fund during the current account or subscription year. The year runs from the child’s birthday (rather than tax year) If the full £4,080 is not paid in, any shortfall cannot be carried forward to subsequent years.

 

Account switching
Only transfers-in of existing Child Trust Funds can be accepted.

Can I withdraw money?

No withdrawals are allowed until the child’s 18th birthday when the account will cease to be a Child Trust Fund. The only exceptions to this are sadly, if the child is diagnosed with a terminal illness and a claim, made on behalf of the child, is accepted by HM Revenue & Customs, or if the child dies.

You can transfer out to either another Child Trust Fund or Junior ISA at any time

Maturity
On the child’s 18th birthday the account will automatically be transferred into an easy access account. They will need to verify their identity before they can access their money.

Additional Information

The account is passbook based. You should try and have your passbook updated at least once a year.

A statement will also be sent annually.

 

Trust Accounts - Important tax information

  • It may be possible to reclaim tax deducted from an account held in trust directly from HM Revenue & Customs by completing a R40 form. Further information and a link to this form can be found using the following link: HMRC R40 Form.
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How to apply

A Child Trust Fund Cash Savings Account can only be opened and managed in one of our branches or agencies.

When you apply for an account with us, we’ll need to verify your identity and address .

Book an appointment

To visit us in branch or request a phone call, enter a town, city or postcode and select a branch of your choice.


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Call us

Speak to one of our friendly advisers and we will send you an application pack in the post.

8am - 8pm: Mon to Fri

9am - 1pm: Sat

0345 1200 100*

By post

We will send you what you need in the post to get you started.

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Not ready to apply yet?

Save for later

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Book a savings review

To ensure that you have the right account for whatever you're saving for, why not visit us in branch for a savings review? Book an appointment at one of our branches.


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