At Skipton, we want to encourage children and families to save for their futures, which is why we offer all eligible children our Skipton Child Trust Fund (CTF). This type of child savings account is a Government initiative aimed at encouraging parents to save for their children's future.
The purpose of this Key Features Document is to provide a balanced summary of our product so that you can make an informed and confident choice about how to save. A Skipton CTF could be a great way to promote a lifetime savings habit with your child and when they are old enough, why not encourage them to add to their own account.
Skipton Child Trust Fund – product details
- The minimum single contribution is £10 by cash (branch only), cheque, transfer or standing order.
- Contributions must not exceed £3,600 per birthday year.
- Any interest in the fund will be exempt from Capital Gains Tax and Income Tax.
- Anyone can contribute to the fund, however, once a contribution has been deposited, only the named child can make withdrawals once they reach 18.
General Information about the Skipton Child Trust Fund
What types of CTF are there?
Child Trust Funds are divided into two distinct groupings:
- Cash Child Trust Fund
- Stakeholder Child Trust Fund.
Please refer to separate leaflet Child Trust Funds – A Simple Guide to Child Trust Funds for more information.
Who can apply to open a CTF on behalf of the child?
The Skipton CTF is a non-stakeholder Child Trust Fund, which means it is a straightforward 'cash' savings account. A Skipton CTF may only be applied for on behalf of a child by an individual aged 16 or over with parental responsibility. This person will become the ‘Registered Contact' and will be authorised to operate the account until the child reaches their 16th birthday. After this time the child, whilst not able to withdraw the money until their 18th birthday, is responsible for the management of the CTF and any Registered Contact's authority to operate the account ceases.
How is my interest paid?
Interest paid on savings is calculated daily. The rate of interest may vary over the years, as is the case with most savings accounts. The calculated interest is then added to the account at midnight on the day before the child's birthday each year.
How do I transfer my Skipton Child Trust Fund to another provider?
The Registered Contact can transfer the CTF to another provider should they choose once the value of the voucher has been credited to the Society by HMRC. Any transfer will be completed within 30 days of the Society receiving a properly completed transfer form.
How do I open a Skipton Child Trust Fund?
You can apply for the Skipton CTF by simply completing an application form and declaration, available from any branch, and returning it together with the voucher. A Skipton CTF can only be opened by the Registered Contact with an official voucher, which will be sent from HMRC directly to the person who claims child benefit on the child's behalf. You will have a 14 day cancellation period from the date we accept your application and voucher in which to change your mind and ask us to cancel the Skipton CTF. At the end of this cancellation period the Society will forward a claim for the value of the voucher to HMRC unless you have told us not to proceed. Interest will not begin to accrue on the CTF until HMRC credit the Society with the value of the voucher.
You and any other member of your family or friends will be able to make contributions to the CTF at any time after the value of the voucher has been credited by HMRC to the Society. Any such contributions will of course earn interest at the applicable rate. The child and Registered Contact, if new to the Society, must provide documentary evidence to confirm their identity. This is a legal requirement for all participating banks and building societies. Your local branch will be able to help you with any enquiries about acceptable documentary evidence.
Let us know what you think
Making sure our members are happy matters to us. So if you think we could improve our products or services, or if you have a complaint, please let us know. If you'd like to find out more about our internal complaints procedure, please ask for details at any branch or from our Principal Office. Alternatively, please contact Customer Relations, Skipton Building Society, The Bailey, Skipton, North Yorkshire BD23 1DN or call 08458 501722*. Complaints we cannot settle may be referred to the Financial Ombudsman Service. We are a participant of the Financial Services Compensation Scheme (FSCS) and you may be entitled to compensation if we are unable to meet our financial obligations. Payments under the scheme are limited to a maximum of £85,000 of an investor's total shares and/or deposits in a building society. Details of the scheme can be obtained from: FSCS, 7th Floor, Lloyds Chambers, 1 Portsoken Street, London E1 8RN Telephone Helpline: 0207 892 7300 • Internet: www.fscs.org.uk
The Financial Services Authority is the independent financial services regulator. It requires us, Skipton Building Society, to give you this important information to help you decide whether our Cash ISAs are right for you. You should read this document carefully so that you understand what you are buying, and then keep it safe for future reference.