OneFamily is a financial services company that offers a variety of savings and investment products, including One family Child Trust Fund.
Child Trust Funds were a government scheme that was introduced in 2002 to help parents and guardians save for their children’s future.
Every child born between 1 September 2002 and 2 January 2011 was automatically entitled to a Child Trust Fund, with the government contributing £250 to the account when the child was born and another £250 when they turned 7.
Parents and guardians could also contribute their own money to the account.
Just like foresters child trust fund which comes with a £0 fee, One Family Child Trust Fund are tax-free investment accounts that offer a variety of investment options, including stocks and shares, bonds, and cash. (FAQs: The 400 investment banking questions ).
The money in the account is locked away until the child turns 18, but they can access it before then if they are going into further education or training. ( Must Read: When can I access my super ).
How Does One Family Child Trust Fund Works?
- Open an account. You can open an account online or by calling OneFamily’s customer service team. You will need to provide some basic information about yourself and your child, such as their name, date of birth, and National Insurance number.
- Make a contribution. You can contribute as much money as you want to your child’s Child Trust Fund, up to a maximum of £1,200 per year. You can make contributions by direct debit, one-off payment, or cheque.
- Choose an investment option. You can choose from a variety of investment options for your child’s Child Trust Fund, including stocks and shares, bonds, and cash. The investment options available to you will depend on your child’s age and risk appetite.
- Track your progress. You can track the performance of your child’s one family Child Trust Fund online or by calling OneFamily’s customer service team. You can also download statements showing the balance of the account and the value of the investment.
- Withdraw or transfer money. You can withdraw money from your child’s Child Trust Fund once they turn 18. You can also transfer the money to another account, such as a bank account or an ISA. ( Review on Kiwisaver Withdrawal ).
Here are some of the key features of One Family Child Trust Fund:
• Tax-free investment: The money in your child’s Child Trust Fund is tax-free, so you can grow their savings without having to worry about paying any tax on the interest or dividends.
• Variety of investment options: You can choose from a variety of investment options for your child’s Child Trust Fund, including stocks and shares, bonds, and cash. This gives you the flexibility to choose an investment strategy that suits your child’s individual circumstances and risk appetite.
• Lock-in until 18: The money in your child’s Child Trust Fund is locked away until they turn 18. This helps to protect their savings from being accessed too early and ensures that they have a nest egg to start their adult life with. ( Check out: how much state pension will I get at 66 ).
• Early access for education or training: Your child can access their One Family Child Trust Fund money before they turn 18 if they are going into further education or training just like NatWest Child Trust Fund.
This can help them to cover the cost of tuition fees, living expenses, and other costs associated with studying.
Who Can Open A One Family Child Trust Fund Account?
Anyone can open a One Family Child Trust Fund account, as long as they are:
- The child’s parent or legal guardian
- A close relative of the child, such as a grandparent, aunt, or uncle
- A friend or family friend
There are no restrictions on how much money you can contribute to a One Family Child Trust Fund account.
However, the government will only contribute the standard £250 to the account if the child is born between 1 September 2002 and 2 January 2011. ( Also read: Carpenters Trust Fund ).
Benefits Of A One Family Child Trust Fund?
- Tax-free investment: The money in your child’s Child Trust Fund is tax-free, so you can grow their savings without having to worry about paying any tax on the interest or dividends.
- Variety of investment options: You can choose from a variety of investment options for your child’s Child Trust Fund, including stocks and shares, bonds, and cash. This gives you the flexibility to choose an investment strategy that suits your child’s individual circumstances and risk appetite.
- Lock-in until 18: The money in your child’s Child Trust Fund is locked away until they turn 18. This helps to protect their savings from being accessed too early and ensures that they have a nest egg to start their adult life with.
- Early access for education or training: Your child can access their Child Trust Fund money before they turn 18 if they are going into further education or training. This can help them to cover the cost of tuition fees, living expenses, and other costs associated with studying.
- No exit fees: There are no exit fees when you close your child’s OneFamily Child Trust Fund. This means that you can take your money out at any time without having to pay any charges.
- Free transfers: You can transfer your child’s OneFamily Child Trust Fund to another provider without having to pay any fees. This gives you the flexibility to choose the provider that is right for your child’s needs.
Overall, OneFamily’s Child Trust Fund is a good option for parents and guardians who are looking for a tax-free investment account for their children.
One Family Child Trust Fund Investment Options:
OneFamily offers three investment options for their Child Trust Funds:
• Stocks and shares
This is the most risky investment option, but it also has the potential for the highest returns.
The money in your child’s account will be invested in a variety of companies, so the value of their savings will go up and down depending on how the stock market performs.
Bonds
This is a less risky investment option than stocks and shares, but it also has lower potential returns.
The money in your child’s account will be invested in government bonds or corporate bonds, which pay a fixed interest rate.
Cash
This is the least risky investment option, but it also has the lowest potential returns.
The money in your child’s account will be invested in cash deposits, such as high-interest savings accounts or money market funds.
When choosing an investment option for your child’s One Family Child Trust Fund, it is important to consider their individual circumstances and risk appetite. If you are not sure which option is right for your child, you can speak to a financial advisor.
One Family Child Trust Fund Charges And Fees
Here are the charges and fees that apply to OneFamily’s Child Trust Fund:
- Annual management charge (AMC): There is an annual management charge of 1.5% of the value of the fund. This is deducted directly from the fund, not from the child’s account.
- Trading costs: There are also trading costs, which are the costs of buying and selling the assets that the fund invests in. These costs are typically around 0.01% to 0.02% of the value of the trade.
- Early access charge: If your child takes early access to their Child Trust Fund money for education or training, they will be charged a 25% early access charge. This is deducted from the amount of money they withdraw.
One Family Child Trust Fund Withdrawal And Transfers?
Here are the steps on how to withdraw money from or transfer your child’s OneFamily Child Trust Fund:
- Log in to your OneFamily online account.
- Click on the “Child Trust Funds” tab.
- Select the Child Trust Fund that you want to withdraw money from or transfer.
- Click on the “Withdraw” or “Transfer” button.
- Follow the instructions on the screen.
Here are the restrictions that apply to withdrawals and transfers from OneFamily Child Trust Funds:
- You cannot withdraw money from a Child Trust Fund until the child turns 18.
- You can withdraw up to £10,000 from a Child Trust Fund if the child is going into further education or training.
- You can transfer a Child Trust Fund to another provider at any time.
- You can only transfer a Child Trust Fund to a provider that offers the same type of account (e.g., cash or stocks and shares).
( FAQs: Can I Withdraw My Pension Before 55 ). If you have any questions about withdrawing money from or transferring your child’s OneFamily Child Trust Fund, you can contact OneFamily customer service on 0344 8 920 920.
Here are some additional things to keep in mind when withdrawing money from or transferring your child’s One Family Child Trust Fund:
- There may be a charge for withdrawing money from a Child Trust Fund.
- There may be a delay in processing your withdrawal or transfer request.
- The amount of money that you can withdraw or transfer may be different from the balance of the account, due to charges and fees.
- You will need to provide identification when you withdraw money from or transfer your child’s OneFamily Child Trust Fund.
One Family Child Trust Fund Early Access
Your child can access their OneFamily Child Trust Fund money before they turn 18 if they are going into further education or training. This is known as early access.
To be eligible for early access, your child must:
- Be aged 16 or over
- Be in full-time education or training
- Be studying for a qualification that is at least NVQ level 2 or equivalent
- Be paying tuition fees.
If your child meets these criteria, they can access up to 80% of the money in their Child Trust Fund. The remaining 20% will be locked away until they turn 18.
To apply for early access, your child will need to provide OneFamily with evidence that they are in full-time education or training and that they are paying tuition fees.
This evidence could include a letter from their school or college, a copy of their course fees, or a student loan statement.
Once OneFamily has received the required evidence, they will process the application and release the money to your child. The money will be paid into a bank account that is nominated by your child.
It is important to note that early access is not without its risks. If your child withdraws money from their Child Trust Fund before they turn 18, they will not be able to benefit from the tax-free growth that the account offers.
Additionally, they may have to pay back any government bonus that they have received.
If you are considering early access for your child, it is important to weigh up the risks and benefits carefully.
You should also talk to your child about their plans for the future and make sure that they are aware of the implications of early access.
Here are some additional things to keep in mind about early access for education or training from OneFamily Child Trust Fund:
- You can apply for early access online or by calling OneFamily customer service.
- There is no charge for applying for early access.
- The money from your child’s Child Trust Fund will be paid into a bank account that you nominate.
- You can use the money from your child’s Child Trust Fund to pay for tuition fees, living expenses, and other costs associated with studying.
- If your child does not use all of the money from their Child Trust Fund, the remaining money will be locked away until they turn 18.
One Family Child Trust Fund Maturity
A OneFamily Child Trust Fund matures when the child turns 18. At this point, the child will have the following options:
- If the child decides to withdraw the money, they will need to log into their online account and request a withdrawal. The money will be paid into their chosen bank account within 5 working days.
- If the child decides to transfer the money to another account, they will need to contact OneFamily to request a transfer. The transfer will usually take around 10 working days to complete.
- If the child decides to leave the money invested, they do not need to do anything. The money will continue to grow tax-free until they decide to withdraw it or transfer it to another account.
It is important to note that the child will not be able to make any further contributions to their OneFamily Child Trust Fund after they turn 18.
In conclusion, OneFamily has a one family child trust fund contact number that is available to provide you with additional support and help with your One Family Child Trust Fund. You can call the helpline on 0344 8 920 920.