Tesco launches Child Trust Fund account

Tesco Personal Finance has launched a Child Trust Fund account so that people will find it easier to save for their children’s future. According to a report issued by the Government last month, 98% of parents who are eligible to take part in the Government scheme are aware of the benefits of opening a Child Trust Fund account. Yet, around a quarter of those families have still to open an account and invest their child’s voucher.

Jeremy Sutton, Head of Tesco Savings commented: “We know from this Government research that over 50,000 families have yet to claim their share of the £12.5 million plus in unclaimed vouchers. We want to make it easier for our customers to benefit from this scheme. By offering a Child Trust Fund and by promoting it in-store, we hope to raise awareness among our customers so that they can ensure they are getting the benefits owed to them.”

The Child Trust Fund initiative was launched by the Government in 2005 to kick-start the savings of all children regardless of their family background. Babies born from September 2002 onwards will receive a voucher of either £250 or £500 at birth and another of the same amount at age seven. Parents can top up the account with up to £1200 each year completely tax-free.

Customers can find out more about how to open a Tesco Child Trust Fund account in-store, on our website at tescofinance.com/personal/finance/home.jsp.

About the Tesco Child Trust Fund

Parents / Legal Guardians of children born after September 2002 receive at least £250 at birth from the government – low income families can receive £500.

This voucher can then be invested in a government approved trust fund that their child can access on their 18th birthday. There is an additional government payment on the child’s 7th birthday and relatives and friends can top it up at any time - up to £1200 a year.

The Tesco CTF is a stakeholder fund that invests the money in a mixture of companies to lower the risk to the consumer.

The service is provided by The Royal Bank of Scotland so customers can be reassured their investment is secure and they will receive an annual statement around the child’s birthday to keep track of how they are progressing.

Relatives and friends can also add up to £1200 a year to top up the tax-free fund.