How it works

What happens to your child's money?

The Sainsbury's Bank Child Trust Fund account is provided by Family Investments, one of the UK's leading Child Trust Fund providers. It is a 'stakeholder account,' which means it meets strict Government criteria, some of which are designed to reduce the risk associated with investing in the stock market.

Initially, most of your child's money will be invested into shares to benefit from the growth potential of the stock market. On or before your child's 13th birthday Family Investments will start to invest less in stocks and shares and more in fixed interest and/or cash investments. This is a process called 'lifestyling' and continues until your child's 18th birthday to help protect their savings towards the end of the investment period. Meeting the stakeholder criteria does not mean that this type of account is suitable for everyone or returns are guaranteed.

The value of the account can fall as well as rise and your child could recieve back less than was paid in.

How the account operates

• Anyone can contribute to the account. Parents, grandparents or any other family member or friend can pay money (from as little as £10) into the account up to a combined total of £1,200 each year
• As well as adding one –off payments you can also set up a direct debit. A little extra each month could make a big difference to your child's future.
• All payments into the account are a gift to your child, which only they will be able to withdraw, and only when he or she is 18 years of age.
• An annual statement helps you keep track of how well the account is performing – you can also call the Customer Service Team at any time for a valuation.
• Returns are free of income tax and capital gains tax (but tax legislation may change in the future). Please see the key features leaflet for a full explanation of the tax treatment.

For more information, visit the government's website at www.childtrustfund.gov.uk

Putting your trust in Sainsbury's Bank

Sainsbury's Bank's Child Trust Fund account is provided by Family Investments, the leading CTF provider with over 30 years' experience in providing savings and investments for families. Family Investments is a mutual organisation, which means it is run for the benefit of its members. Currently there are more than 730,000 of them in the UK and Family looks after around £1.6 billion of their money.

Family Investments is a trading name of Family Equity Plan Ltd (Co. No. 2208249) which is authorised and regulated by the Financial Services Authority. Registered in England at 16-17 West Street, Brighton BN1 2RL.

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