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Foresters look after over 1 million children savings plans

We look after over 1 million children savings Plans

 

Our customer satisfaction rating 

Our customers rate us 4.6 out of 5 stars

 

Taking care of family finances for over 140 years

Taking care of family finances for over 140 years

 

We offer choice in how you do business with us

Choice in how you do business with us

 

A Child Trust Fund with Foresters

We pride ourselves on looking after over one million children’s savings and when they reach their 18th birthday we hope that the money saved for them helps their journey into adulthood, but we don’t want it to stop there. We want to be there for the other milestones in their life; saving for their first home, their children and protecting the ones they love.

Our Purpose is to help people save, protect their families and give back to our members and the communities they live in.

What is going to happen to the Child Trust Funds at age 18?

Children with Child Trust Funds will begin to turn 18 from the 1st September 2020. Although this seems a long way away, it is important to start planning now.

We look after over one million children’s savings plans, so the countdown to the first Child Trust Fund Planholders reaching age 18 is a significant milestone to us, as well as to the children who will be able to use this money to help towards their first steps into adulthood or to continue saving for their future. We are looking forward to celebrating this milestone with them.

Whether you are a child wanting to understand your options, or a parent/guardian wondering what is going to happen to the Child Trust Fund – we'll be providing you with all the information you need.

Information is based on our current understanding and may change in the future.

I would like to know more about my Child Trust Fund

teenagers

What is a Child Trust Fund?

The Child Trust Fund is a Government savings initiative that was introduced in 2005 and back dated to children who were born on or after the 1st September 2002. If you were born in the UK, your parents/guardians would have been given a voucher (ranging from £50 - £500, depending on your circumstances and when you were born) from the Government to place with a Child Trust Fund provider. The Government withdrew Child Trust Funds on the 2nd January 2011.

The Child Trust Fund can be invested in cash, or in stocks and shares (like the Child Trust Funds we hold). The Government limits the amount that parents/guardians, family and friends can contribute each year. This is currently £4,368 and the contribution year runs from birthday to birthday.

The monies saved by parents/guardians, family members and friends over the years help to boost the value of your Child Trust Fund, which you can access from your 18th birthday.

For more information on the Child Trust Fund, check out our article.

 

What are the options going to be when I reach 18?

You have the option to withdraw the money, continue to save, or a mixture of the two - don't worry, you can leave the money where it is until you have decided. 

 

 

What is going to happen to my Child Trust Fund when I turn 18?

You will be able to instruct us whether you would like to continue to save, or if you would like to withdraw the money from the Plan - or as mentioned above you can do a bit of both. If you are not ready to make the decision when you reach age 18, you can leave it where it is. 

 

What is an ISA?

If you would like to continue to save with us, you can do this in an ISA. An ISA is a tax-efficient way to save for the future. Our ISA is a simple and affordable option which allows you to continue to save towards your financial future and/or for something special as well as allowing you access to your money. 

You can save in a Forester Life ISA from as little as £20 and our ISA is the only ISA on the market that gives you the flexibility of combining both a Lifetime ISA and a Stocks and Shares ISA in one plan.

 

How will I access the money?

We may require proof of your identity. Whether you are planning on taking some (or all) of the money, all you need to do is instruct us if you would like the money to be paid to you, or if you would like to continue saving. So, if you don't have one already you will need to have an active bank account in your name so that we can make the payment to you.

   

What happens if I leave the money where it is?

You can leave the money where it is after your 18th Birthday. However you will need to instruct us if you wish to withdraw or add any money, or make any changes to the Plan.

 

How will I know more about my Child Trust Fund?

We will keep this webpage up to date when we hear more information.

Since the 28th January 2019, Her Majesty’s Revenue & Customs (HMRC) have included extra information into the National Insurance Number letter you receive shortly before your 16th Birthday. Within this letter the following information is included:

“Child Trust Funds
When you turn 16, take control of your Child Trust Fund. Ask your parents or guardian, for more information go to 
www.gov.uk/child-trust-funds

HMRC have mentioned that you can take control of your Child Trust Fund. This means that you can look after your Child Trust Fund, make any changes to the details of the Plan and we will write to you with any Child Trust Fund information, for example your statement. You do not have to do this; your parents/guardians can continue to look after your Child Trust Fund on your behalf, up until your 18th Birthday.

Whoever looks after the Child Trust Fund is referred to as the Registered Contact, this is either someone with parental responsibility or you, the child, at age 16 or over.

If you do want to look after your Child Trust Fund simply complete this Registered Contact Application form.

 

I have no Registered Contact for my Child Trust Fund

If your Child Trust Fund voucher was not invested on your behalf, the Government placed it with one of the Child Trust Fund providers. If so, your Child Trust Fund may not have a Registered Contact (the person who has responsibility for looking after the Child Trust Fund).

If someone with parental responsibility would like to become the Registered Contact, please complete this Registered Contact application form. Or if you are aged 16 or over and would like to become the Registered Contact for your own Child Trust Fund please complete this Registered Contact Application form.

 

I would like to know more about Foresters Financial

Foresters Financial is an international financial services organisation with more than 3 million customers and members, in the UK, Canada and the US.

We are more than a financial services company; for over 140 years we have helped our customers make a difference in their communities. Our customers and their families take part in hundreds of different community days each year, ranging from community beautification, such as beach cleans, supporting charities, refurbishments and making care packages for the less fortunate.

We have helped families build financial security and help each other make a difference in their communities.

We are driven to share, not shareholder driven.

What parents need to know about their child's Child Trust Fund

teenagers 

I would like to know more about my child’s Child Trust Fund

We know that some parents may have decided to keep this as a surprise for their child and have been saving over the years. Although this is a perfect gift, to help with university, towards a new home or even a new car, don’t let the surprise be spoilt by someone else – start talking to your child about their Child Trust Fund.

Talking to your child about finances can be a tricky topic for conversation, as parents you are their go-to for help and advice –  the information on our Child Trust Fund Hub should help answer some of those questions. 

For more information on the Child Trust Fund, check out our article.

 

Will anyone write to my child about their Child Trust Fund?

Yes. HMRC have included some information about Child Trust Funds into the National Insurance letters your child will receive shortly before their 16th Birthday. Within this letter the following information about Child Trust Funds is included:

“Child Trust Fund
When you turn 16, take control of your Child Trust Fund. Ask your parents or guardian, for more information go to
www.gov.uk/child-trust-funds

So your child may come to you with some questions.

Although HMRC have mentioned your child can take control of their Child Trust Fund at age 16, there is no requirement to do so. You may want to discuss this with them, if they wish you can continue to look after the Child Trust Fund up to age 18.

Additionally, more information will be available in the media and children may start talking to each other about their Child Trust Funds.

  

What are my child’s options?

The Government have not yet finalised the details. However we do know that your child has the option to withdraw the money, continue to save or a mixture of the two, but as mentioned above your child can leave the money where it is until they decide. If your child decides they would like to take some, or all of the money they will require an active bank account in their name so that we can make the payment to them. 

 

I pay into the Child Trust Fund - Can I still contribute after age 18?

No, after the child turns 18 we will no longer be able to accept any gift payments into the Child Trust Fund. If the child wishes to continue to save with us we will require their instruction. 

 

Information on this page is based on our current understanding and may change in the future. This information will be updated accordingly.

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Looking for more information? Find out about your Child Trust Fund with us