What’s the difference between stakeholder and non-stakeholder?
There are strict rules for Stakeholder accounts. For example they must start off investing primarily in shares and they can't charge you more than 1.5% annual management charge.
Not every Child Trust Fund account will meet these criteria - some will charge more or less than the maximum and others will put your money into an alternative investment such as a cash savings account. While there is nothing wrong with these, Sainsbury's Bank believes that Stakeholder accounts are a potentially profitable way to invest your child's money. You should remember though, that just because a Stakeholder account will meet certain criteria it does not mean it is suitable for you or your child or has a guaranteed return. It is possible your child could get back less than was invested.
What are the charges?
A Stakeholder account has annual charges of no more than 1.5% per annum of the value of the fund. Providers may also levy a charge for incidental services such as share dealing in transfer cases.
How much can be paid into my child's Child Trust Fund account?
The limit is £4,260 in any subscription year — the date of the child’s birthday to the day before their next birthday. This excludes the value of the voucher in the first year. Remember that only your child can access the money and only when they are 18.
Who can pay into my child's Child Trust Fund account?
Anyone can 'top up' your child's Child Trust Fund account as long as the total amount paid in during the subscription year doesn’t exceed the investment limit.
Am I committed to regular contributions?
No. You may invest as and when you like. You’re not obliged to pay anything into the Child Trust Fund account other than the Government voucher.
How long will it take to transfer funds?
If you send money to your account by Faster Payments, it should arrive no later than the next business day. If you send money from your account before 5pm on a business day, the funds will arrive in the external account on the same day. If it's after 5pm, it will arrive on the next business day.
If you make an online transfer to an external account by 5pm Monday to Friday it will be transferred by midnight on the same day. Transfer requests after this time will be made on the next business day.
Transfers between Sainsbury's Bank accounts normally arrive in your account straightaway, except when you make them after 8pm or on a non-bank working day.
Can I access the money invested into my child's Child Trust Fund account?
No. You can only pay money into your child's Child Trust Fund account. Your child is the only one who can access the money in their account, but not until their 18th birthday.
Can I transfer it to another provider if I want to?
Yes. The account can be transferred (in whole) to another provider at any time. There should be no fee for the transfer providing you transfer between Stakeholder accounts. However, providers are allowed to charge the account with the costs of any share dealings necessary as part of the transfer process. You will be able to transfer your child's Child Trust Fund account as many times as you wish.