What Is NatWest Child Trust Fund?
A NatWest Child Trust Fund (CTF) is a tax-efficient savings account that was opened for children born between 1st September 2002 and 2nd January 2011.
The government gave every child born in this period a voucher for £250, with low-income families receiving a voucher for £500.
Parents or guardians could then open a CTF account with the voucher, and add their own money to it.
How Does NatWest Child Trust Fund Work?
The money in a NatWest Child Trust Fund is invested in a fund, which is a basket of different investments.
The default fund for NatWest CTFs is the Personal Portfolio Balanced Fund, which is managed by Coutts & Co.
This fund invests in a mix of stocks and bonds, which helps to reduce the risk of losing money.
Children cannot access their NatWest Child trust funds until they turn 18. At that point, they have a number of options:
- They can continue to invest the money in the CTF.
- They can withdraw all or part of the money and spend it as they wish.
- They can transfer the money to another ISA provider.
If a child chooses to withdraw money from their NatWest child trust fund, they will have to pay income tax on any gains that have been made.
Benefits Of NatWest Child Trust Fund?
There are several benefits to opening a NatWest Child Trust Fund (CTF) for your child.
1. Government voucher: The government gave every child born between 1st September 2002 and 2nd January 2011 a voucher for £250, with low-income families receiving a voucher for £500. This voucher can be used to open a CTF account with NatWest.
2. Tax-free savings: The money in a NatWest CTF is tax-free, which means that you won’t have to pay any income tax on any interest or dividends that it earns.
3. Flexibility: You can choose to invest the money in your child’s CTF in a variety of different funds, from cash to shares. This gives you the flexibility to choose the investment that you think is right for your child’s needs.
4. Security: The money in your child’s CTF is protected by the Financial Services Compensation Scheme (FSCS) up to £85,000. This means that if NatWest were to go bust, your child would still get their money back.
5. Easy to manage: You can manage your child’s CTF online or through the NatWest app. This makes it easy to check the balance, make withdrawals, and transfer money to another ISA provider.
Overall, a NatWest child trust fund is a good way to save for your child’s future. It offers a number of benefits, including government vouchers, tax-free savings, flexibility, security, and easy management.
Here are some additional things to consider when opening a NatWest CTF:
- The maximum amount that can be saved in a NatWest CTF is £4,368 per year. This means that you can save up to £4,368 per year for your child’s CTF.
- NatWest CTFs are subject to charges. The current charges are £1.50 per month for a cash CTF and £2.50 per month for a stocks and shares CTF.
- Children cannot access their CTF funds until they turn 18. At that point, they have a number of options with the money, including continuing to invest it, withdrawing it, or transferring it to another ISA provider.
If you are considering opening a NatWest child trust fund for your child, I recommend that you speak to a financial advisor to get more information and advice.
Opening NatWest Child Trust Fund
Here are the steps on how to open a NatWest Child Trust Fund:
1. Check eligibility requirements. To be eligible to open a NatWest Child Trust Fund, the child must:
- Be born between 1st September 2002 and 2nd January 2011.
- Be a UK resident.
- Not have already opened a Child Trust Fund.
2. Choose a type of investment. NatWest offers two types of Child Trust Funds: cash and stocks and shares.
- Cash CTFs are invested in a mix of safe investments, such as cash and government bonds. They are a good option for children who want to keep their money safe.
- Stocks and shares CTFs are invested in a mix of different types of investments, including stocks, bonds, and property. They are a good option for children who are willing to take on more risk in order to potentially earn higher returns.
3. Open an account. You can open a NatWest Child Trust Fund online, by phone, or in branch. You will need to provide the following information:
- Your child’s name and date of birth.
- Your name and address.
- Your National Insurance number.
- The amount of money you want to deposit.
- The type of investment you want to choose.
4. Make a contribution. You can make contributions to your child’s NatWest Child Trust Fund at any time. The maximum amount you can contribute per year is £4,368.
5. Manage your account. You can manage your child’s NatWest Child Trust Fund online, by phone, or in branch. You can view your balance, make withdrawals, and transfer money to another account.
6. Withdraw money. Your child can withdraw money from their NatWest Child Trust Fund when they turn 18.
They can also withdraw money before they turn 18 if they have a good reason, such as to pay for education or training.
Here are some additional things to keep in mind when opening a NatWest Child Trust Fund:
- You can only open one Child Trust Fund per child
- The government will give your child a voucher for £250 when they are born. You can use this voucher to open a Child Trust Fund or you can cash it in.
- If you have any questions about opening a NatWest Child Trust Fund, you can contact NatWest customer service..
Contributing To NatWest Child Trust Fund
Here are the ways you can contribute to a NatWest Child Trust Fund:
1. Direct debit: You can set up a regular direct debit to contribute to your child’s CTF. This is a convenient way to make regular contributions, and it can help you save for your child’s future without having to think about it.
2. Standing order: You can also set up a standing order to contribute to your child’s CTF. This is similar to a direct debit, but it is less flexible. Once you set up a standing order, it will continue to pay out on the same day each month, even if you change your mind about contributing to the CTF.
3. One-off payment: You can also make a one-off payment to your child’s CTF at any time. This is a good option if you receive a lump sum of money, or if you want to make a larger contribution to the CTF.
The maximum amount that you can contribute to a NatWest Child Trust Fund in a single year is £4,368. You can contribute up to this amount until your child turns 18.
To contribute to a NatWest Child Trust Fund, you will need to contact NatWest customer service. They will need the following information from you:
- Your child’s name and date of birth
- Your name and address
- Your National Insurance number
- The amount you want to contribute
- Your preferred payment method
Once you have provided this information, NatWest will set up your contribution and the money will be added to your child’s CTF account.
Investing Your NatWest Child Trust Fund
Investing your NatWest Child Trust Fund (CTF) is a good way to grow your child’s money over time.
The money in your CTF is invested in a fund, which is a basket of different investments.
The default fund for NatWest CTFs is the Personal Portfolio Balanced Fund, which is managed by Coutts & Co.
This fund invests in a mix of stocks and bonds, which helps to reduce the risk of losing money.
You can also choose to invest your CTF in other funds, such as the Personal Portfolio Cautious Fund or the Personal Portfolio Growth Fund.
These funds have different risk levels, so you need to choose one that is right for your child’s circumstances.
If you are not sure which fund to choose, you can speak to a financial advisor. They can help you to understand the different risks and rewards of each fund, and they can recommend a fund that is right for your child.
Once you have chosen a fund, you can start investing your CTF. You can invest any amount of money you like, up to the maximum annual contribution limit of £4,368.
Your CTF investments will grow over time, and hopefully you will make a profit.
However, it is important to remember that investments can go down as well as up. So, you should not invest money that you cannot afford to lose.
When your child turns 18, they will be able to take control of their CTF. They can then decide whether to continue investing the money, withdraw it all or part of it, or transfer it to another ISA provider.
If they choose to withdraw money from their CTF, they will have to pay income tax on any gains that have been made.
Investing your NatWest CTF is a good way to help your child save for their future.
However, it is important to understand the risks involved and to choose investments that are right for your child’s circumstances.
Here are some additional tips for investing your NatWest child trust fund:
- Start investing as early as possible. The sooner you start investing, the more time your money has to grow.
- Regularly invest small amounts. This is a good way to dollar cost average your investments and reduce your risk.
- Rebalance your investments regularly. This is important to make sure that your investments are still aligned with your risk tolerance and investment goals.
- Be patient. Investing is a long-term game. Don’t expect to get rich quick.
- Get professional advice. If you are not sure how to invest your CTF, you can speak to a financial advisor. They can help you to choose the right investments and manage your risk.
How To Withdraw Your Money From NatWest Child Trust Fund?
You can withdraw money from your NatWest Child Trust Fund (CTF) when you turn 18. There are a few things you need to do to withdraw money from your CTF:
- You will need to have a UK current or savings account in your name.
- You will need to confirm your identity.
- You will need to tell NatWest what you want to do with your money. You can choose to:
- Continue to invest with NatWest in an Adult ISA.
- Withdraw all or part of your money.
- Transfer to another ISA provider.
Please note that it may take up to a few weeks in some cases from receipt of appropriate identification and withdrawal instruction for the payment to be made into your bank account.
Here are the steps on how to withdraw money from your NatWest CTF:
- Log in to your NatWest online banking account.
- Click on the “Child Trust Fund” tab.
- Click on the “Withdraw money” button.
- Enter the amount of money you want to withdraw.
- Enter your account details for your UK current or savings account.
- Confirm your identity.
- Click on the “Submit” button.
NatWest will then process your withdrawal request. The money will be paid into your UK current or savings account within a few weeks.
NatWest Child Trust Fund Help And Support Line
Here are some resources for help and support with your NatWest Child Trust Fund:
- NatWest customer service: You can contact NatWest customer service on 0345 300 2585.
- NatWest website: The NatWest website has a dedicated section for Child Trust Funds, with information on how to open a CTF, contribute to a CTF, invest your CTF, and withdraw money from a CTF.
- Child Trust Fund Helpline: The Child Trust Fund Helpline is a free service that can provide you with information and advice on Child Trust Funds. You can call the Child Trust Fund Helpline on 0800 138 7757.
- MoneyHelper: MoneyHelper is a government website that provides information and advice on a range of financial topics, including Child Trust Funds. You can visit the MoneyHelper website at https://www.moneyhelper.org.uk/.
In conclusion, NatWest Child Trust Funds are a good option for parents or guardians who want to save money for their child’s future.
They offer a tax-efficient way to save, and the money can be used for a variety of purposes, such as education, a first home, or starting a business.