Cash Savings CTF Account

This account works much like an ordinary savings account. Interest is paid on the money in the account once a year. Although the interest rate may change, there is the reassurance that the money in the account will grow each year and be completely secure. This type of account can be opened at any Yorkshire Building Society branch.


Interest rates

Interest rates are variable, paid annually. *Paid for the first 12 months the account is open. This introductory offer may be withdrawn at any time.

Gross rate p.a.
Interest rate payable before any income tax is deducted. It can only be paid subject to the required registration.

Net rate p.a.
Interest rate payable after the deduction of income tax, at the lower rate of 20%.

AER stands for Annual Equivalent Rate and shows 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.

 

Cash Savings account information

  • Competitive variable rate of tax-free interest. The rate excluding the bonus is guaranteed to be no more than 1% p.a. below the Bank of England's base rate.
  • Parents, family members, friends and even the child can add a combined total of £3,720 to the account each account year.
  • You can save by post, standing order or over the counter at any of our branches or agencies.
  • Interest on the account is tax-free and there is no capital gains tax to pay.
  • No minimum subscription.
  • No withdrawals are allowed until the childs 18th birthday.

Introductory offer:The introductory bonus of 0.70% will be paid for the first 12 months the account is open. Please note, the offer may be withdrawn at any time.

  1. Risks
    It is important to note that a Cash Savings Account may not deliver the same level of growth as a Stakeholder Account, and therefore it may not be suitable for the child.
  2. Interest payments
    Interest is calculated daily and is paid into the account once a year on the night before the child's birthday. Interest cannot be paid out to another account.

    We recommend that the account passbook be updated at least once a year with details of any interest payments.
  3. Paying money in
    Paying in is easy. Simply take the account passbook and deposit to any of our branches or agencies. Payments can also be made by standing order from another bank or building society account. There is no minimum deposit.
  4. Accessing money
    No withdrawals are allowed until the child's 18th birthday, when the account will cease to be a CTF account. The only exception to this is if, sadly, the child dies or is diagnosed with a terminal illness and a claim made on behalf of the child is accepted by HM Revenue & Customs.
  5. Statements
    A statement will be sent annually, normally within 5 working days of the child's birthday. If the statement or the passbook has an entry that seems to be wrong, please tell us as soon as possible so that we can resolve the matter.
  6. Transfers
    Yorkshire Building Society will transfer the account to another CTF provider on the instructions of the Registered Contact. We will always carry out the instructions within a period of 30 days.

    On the child's 18th birthday, the CTF will automatically be transferred into an easy access account. At this point it will be necessary to verify the identity of the child before they can access their funds.
  7. Membership
    Although the child will be a member of the Society, certain membership rights do not apply until they reach the age of 18, e.g. only members aged 18 or over can vote at the Society's Annual General Meetings. For more details, please see our booklet 'Your rights as a member'. The Registered Contact will not be a member of the Society.

    This is not a Stakeholder Account, Family Investments are a Child Trust Fund provider that offer this option.
  8. Links
 

What you need to know about CTF

  1. Eligibility
    Prior to the withdrawal of the scheme, children were eligible for the CTF as long as:
    • the child was born on or after 1 September 2002 and up to 2 January 2011 inclusive
    • the child lived in the UK
    • Child Benefit had been awarded for the child.
    Accounts can only be held in the name of a child by a person with parental responsibility for the child. Only one CTF account can be held per child
  2. Registered contact
    An adult opening a CTF account on behalf of a child will become the account's 'Registered Contact'. Once the child reaches 16, any existing 'Registered Contact' on the account can no longer act and the child must apply to become the 'Registered Contact'.
  3. Paying money in
    Up to £3,720 of voluntary contributions can be paid into the CTF account in the account year. Payments can be made in sterling by anyone - parents, family members, friends and the child for whom the account is opened.
    If the £3,720 limit is not reached in the current account year, any shortfall cannot be carried forward to subsequent years.
    An account year runs for 12 months starting on the child's birthday and ending on the day before the child's next birthday. The first account year starts on the date the account is opened and ends on the day before the child's next birthday. It may, therefore, be less than 12 complete months.
    Money paid into a CTF account is a gift to the child and is 'locked in'. This means that it can only be accessed by the child when they reach 18. Contributions made to a CTF account cannot be returned to the contributor and no person can make withdrawals on the child's behalf.
  4. Accessing money
    No withdrawals are allowed until the child's 18th birthday, when the account will cease to be a CTF account. The only exception to this is if, sadly, the child dies or is diagnosed with a terminal illness and a claim made on behalf of the child is accepted by HM Revenue & Customs.
  5. Tax benefits
    Any income earned is free of income or capital gains tax, under current legislation. However, this favourable tax treatment may change in the future.

    Normally, if parents make a gift into their child's savings account that results in more than £100 a year income for the child (for example, interest on a building society account), the parent is taxed on that amount at their highest rate of income tax. With the CTF, this does not currently apply.
  6. Voucher expiry date
    The last vouchers expired on 31st December 2012. If a voucher has not been used to open a CTF account before its expiry date, HM Revenue & Customs will have opened an account on behalf of the child and will provide you with details. The voucher will not be valid after this time.
  7. Transferring to another provider or between account types
    The CTF account can be transferred to another provider or to a different type of CTF account at any time, even after the scheme is withdrawn. However, a child can only have one type of account with any one provider.
    Transfer will be free of charge or expense except in certain cases connected with the disposal or acquisition of investments.
    Please note that you cannot transfer from a Child Trust Fund to a Junior ISA or vice versa
  8. Further information about the CTF
    For more details about the CTF scheme, please contact us on 0845 1200 100 or visit any of our branches or agencies.

    In addition, the following HM Revenue & Customs resources are available:
 

Summary box

Key Product Information for our Savings Account

Account Name Cash Savings Child Trust Fund
Interest rates (AERs) Variable rate paid annually, view interest rate.
Tax Status
Conditions for bonus payment

Introductory bonus paid for the first 12 months the account is open

Withdrawal arrangements

None allowed until childs 18th birthday.

Access Branch or Agency

Whether you can benefit from gross, net or tax free interest is dependent on your own personal circumstances and tax status and so may be subject to change in the future.

 

How to apply for a Cash Savings CTF Account

Changing your mind

You have 14 days from the date we accept your transfer application to cancel your instructions before the account will be opened and the transfer process starts. If you wish exercise your rights to cancel you will need to contact us in writing. Once the transfer process starts, it may take up to 30 days before the transfer completes.

Our responsibility to you

Under regulations for the prevention of financial crime, if the Registered Contact wants to open another account with Yorkshire Building Society in the future, we have a responsibility to verify their identity separately, even if they are an existing member of the Society.

 

Call us on 0845 1 200 100*

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Yorkshire Building Society is one of the largest building societies in the UK. We offer a range of financial products and services including: savings & investment accounts, insurance products, loans, mortgages and more.

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Yorkshire Building Society is a member of the Building Societies Association and is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. We are entered in the Financial Services Register under registration number 106085.

Any reference on this website or in our literature to the Financial Services Authority (FSA) should be deemed to mean the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA).