Make the most of your child's voucher

If you have a child born on or after 1st September 2002 and are receiving Child Benefit, then you'll automatically receive a voucher from the government worth £250 with an additional £250 if your family receives full Child Tax Credit. These vouchers are being sent to all eligible families so they can open a Child Trust Fund account for their child. At age 7 your child will receive a further payment of at least £250 into their Child Trust Fund account.

Is your child eligible?

If your child meets all of the following criteria, they are eligible for a Child Trust Fund:

• Born on or after 1st September 2002
• Resident in the UK
• Eligible for Child Benefit
• Child is not subject to immigration control.

Now is the time to start investing for your child's future

When you open a Family Investments Child Trust Fund account, your child's money will be invested in shares where it has good potential to grow over the longer term. However, this means its value can fall as well as rise and your child may get back less than has been paid in.

This CTF account is provided by Family Investments. Family Investments does not provide advice. If you have any doubts about the suitability of this product you should seek financial advice.

For more information, you could also visit the Government's website www.childtrustfund.gov.uk

What happens to your child's money?

This Child Trust Fund account is provided by Family Investments; Family Investments are the UK's favourite Child Trust Fund provider looking after over 700,000 CTF accounts and they have over 30 years experience in helping families invest for their future. 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 stocks and 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 (although tax advantages depend on individual circumstances and may change in the future). Please see the document headed 'All you need to know' for a full explanation of the tax treatment.
• If you open a Family Investments Child Trust Fund, your child's account will be with the only Stakeholder provider where you can manage the account online! Visit their Online Wizard section for more information about the benefits of a Child Trust Fund.

Ways to add to your child's Child Trust Fund account

The initial free Government voucher is certainly a great start, but even with the additional free £250 voucher due to be provided on your childs seventh birthday, in 18 years time the £500 invested might only have grown to around £1,000*.

With regular additional amounts invested every month or occasional one-off payments throughout the 18-year account period, you could make a really big difference. But how much should you consider saving? The figures below may be a useful guide.

• £4,500* from around £10 per month this could help towards travels around the globe.
• £8,000* from around £20 per month - this could help finance your childs first car.
• £18,500* from around £50 per month this might help towards your childs first home.

*The figures shown allow for a £250 Government payment at outset and then again at age seven. They assume that investments grow at 6.75% per year over the full 18-year term, with contributions starting from age 0 and with annual charges of 1.5% (the calculations are not exact). These projections are not a reliable indicator of future performance. These figures are illustrative, not guaranteed, and their future buying power would be affected by inflation. This account invests in shares so its value can fall as well as rise, Your child could receive back less than has been paid in.

There's a wide range of payment options available, which are detailed below:

By phone Call 0800 7315 896 to set up a regular direct debit or standing order, or choose to make a single one-off payment.
By cheque Send a cheque with the child's name, date of birth and Child Trust Fund account number written on the back of the cheque to the address below. Cheques should be made payable to Family Equity Plan Limited or the child. Family Investments Child Trust Fund FREEPOST BR2206 Brighton BN1 2BR
Online by direct debit Set up a regular direct debit or one-off payment. Please have your child's trust fund account number and your bank details to hand.

Once you've opened up your child's Family Investments Child Trust Fund account, you'll be able to register for Online Wizard to simply and securely manage your child's CTF account online. It will put all the information you need at your fingertips, from the accounts current balance to projections of what it might be worth when your child turns 18 - you'll be able to:

• Check the current value of your child's account
• View an up-to-date statement summary
• See what the final value of your child's account may be at age 18
• See how much you can still top up this year
• Set up and manage your direct debit top ups online
• Personalise your secure account management page with a picture of your little one

If you've already set up a Family Investments CTF and would like to register for Online Wizard, please visit Online Wizard.

Want to find out more about our Child Trust Fund? Why not give us a call or find out how to receive an information pack.

This CTF account is provided by Family Investments. Family Investments does not provide advice. If you have any doubts about the suitability of this product you should seek financial advice.