This account works much like an ordinary savings account. Interest is paid on the money in the account once a year. Although the interest rate may change, there is the reassurance that the money in the account will grow each year and be completely secure. This type of account can be opened at any Yorkshire Building Society branch.
Introductory offer: The introductory bonus of 0.70% is for accounts opened on or after 24 October 2005 and will be paid for the first 12 months the account is open. Please note, the offer may be withdrawn at any time.
It is important to note that a Cash Savings Account may not deliver the same level of growth as a Stakeholder Account, and therefore it may not be suitable for the child.
Interest is calculated daily and is paid into the account once a year on the night before the child's birthday. Interest cannot be paid out to another account.
We recommend that the account passbook be updated at least once a year with details of any interest payments.
Paying in is easy. Simply take the account passbook and deposit to any of our branches or agencies. Payments can also be made by standing order from another bank or building society account. There is no minimum deposit.
No withdrawals are allowed until the child's 18th birthday, when the account will cease to be a CTF account. The only exception to this is if, sadly, the child dies or is diagnosed with a terminal illness and a claim made on behalf of the child is accepted by HM Revenue & Customs.
A statement will be sent annually, normally within 5 working days of the child's birthday. If the statement or the passbook has an entry that seems to be wrong, please tell us as soon as possible so that we can resolve the matter.
Yorkshire Building Society will transfer the account to another CTF provider on the instructions of the Registered Contact. We will always carry out the instructions within a period of 30 days.
On the child's 18th birthday, the CTF will automatically be transferred into an easy access account. At this point it will be necessary to verify the identity of the child before they can access their funds.
Although the child will be a member of the Society, certain membership rights do not apply until they reach the age of 18, e.g. only members aged 18 or over can vote at the Society's Annual General Meetings. For more details, please see our booklet 'Your rights as a member'. The Registered Contact will not be a member of the Society.
This is not a Stakeholder CTF Account. A Stakeholder Account is available through engage Mutual Assurance.
A child is eligible for the CTF as long as:
The account can only be opened in the name of a child by a person with parental responsibility for the child. Only one CTF account can be held per child.
An adult opening a CTF account on behalf of a child will become the account's 'Registered Contact'. Once the child reaches 16, any existing 'Registered Contact' on the account can no longer act and the child must apply to become the 'Registered Contact'.
Up to £1,200 of voluntary contributions can be paid into the CTF account in any account year. This is in addition to the initial Government voucher and any further Government payment, which the child may receive. Payments can be made in sterling by anyone - parents, family members, friends and the child for whom the account is opened.
If the £1,200 limit is not reached in any account year, any shortfall cannot be carried forward to subsequent years.
An account year runs for 12 months starting on the child's birthday and ending on the day before the child's next birthday. The first account year starts on the date the account is opened and ends on the day before the child's next birthday. It may, therefore, be less than 12 complete months.
Money paid into a CTF account is a gift to the child and is 'locked in'. This means that it can only be accessed by the child when they reach 18. Contributions made to a CTF account cannot be returned to the contributor and no person can make withdrawals on the child's behalf.
No withdrawals are allowed until the child's 18th birthday, when the account will cease to be a CTF account. The only exception to this is if, sadly, the child dies or is diagnosed with a terminal illness and a claim made on behalf of the child is accepted by HM Revenue & Customs.
Any income earned is free of income or capital gains tax, under current legislation. However, this favourable tax treatment may change in the future.
Normally, if parents make a gift into their child's savings account that results in more than £100 a year income for the child (for example, interest on a building society account), the parent is taxed on that amount at their highest rate of income tax. With the CTF, this does not currently apply.
If the voucher is not used to open a CTF account before its expiry date, HM Revenue & Customs will open a Stakeholder CTF Account on behalf of the child with a provider of its choice. The voucher will not be valid after this time.
The CTF account can be transferred to another provider or to a different type of CTF account at any time. However, a child can only have one type of account with any one provider. Transfer will be free of charge or expense except in certain cases connected with the disposal or acquisition of investments.
For more details about the CTF scheme, please contact us on 0845 1200 100 or visit any of our branches or agencies.
In addition, the following HM Revenue & Customs resources are available:
Key Product Information for our Savings Account
| Account Name | Cash Savings Child Trust Fund |
|---|---|
| Interest rates (AERs) | Variable interest rate paid annually |
| Tax Status | Tax-free |
| Conditions for bonus payment | Introductory bonus paid for the first 12 months the account is open |
| Withdrawal arrangements | None allowed until childs 18th birthday |
| Access | Branch or Agency |
*Paid for the first 12 months the account is open. This introductory offer may be withdrawn at any time.
Interest rates are variable. All rates shown are per annum.
Gross rate p.a.
Interest rate payable before any income tax is deducted. It can only be paid subject to the required registration.
Net rate p.a.
Interest rate payable after the deduction of income tax, at the lower rate of 20%.
AER
AER stands for Annual Equivalent Rate and shows what the interest rate would be if interest was paid and added each year. This will enable you to compare more easily the return you can expect from your savings over time.
You will need to include the HM Revenue & Customs Child Trust Fund voucher with your application.
If an application is made by post, you have 14 days from the date we accept the application in which to change your mind before the account will be opened. We will not contact you during the 14 day period, unless your application is incomplete.
If you do not change your mind, your account will be opened after the 14 day period has passed.
If you do change your mind within 14 days, please contact us and we will return your voucher to you. If you change your mind after the account is opened, there are some transfer options available to you.
We have a responsibility to verify the identity of the child, which we will do by using their CTF voucher. Under regulations for the prevention of financial crime, if the Registered Contact wants to open another account with Yorkshire Building Society in the future, we have a responsibility to verify their identity separately, even if they are an existing member of the Society.
Yorkshire Building Society is one of the largest building societies in the UK. We offer a range of financial products and services including: savings & investment accounts, insurance products, loans, mortgages and more.
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Yorkshire Building Society is authorised and regulated by the Financial Services Authority (FSA).
