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How much you can add to the account

From 1 November 2023 the yearly limit for all payments into a CTF account increased to £3,600. Anyone can make the payments.

It's up to you to decide how much you put into the account.

The start date for each £3,600 is the child’s birthday. The end date is the day before the child’s next birthday.

You might have to put in a minimum amount of money into the account. For example you may have to make a minimum payment of £10 or more into a stakeholder account.

Check with the provider what they will accept and how often.

How you can add money to the account

For stakeholder accounts, you can add money by cheque, standing order or direct credit.

For savings or share accounts, you may need to check how you can make payments. Speak to the provider or to the person who is managing the account. This is usually the person who is responsible for the child.

Effect of government payments on the £3,600 limit

Payments made by the government don't count towards the £3,600 - but there are exceptions. These are:

• payments made to children by the Welsh Assembly Government up to 31 January 2024
• payments made by a local authority to a child they are looking after

• Child Trust Fund Cymru: payments of claims in 2009-10 and 2010-11 Opens new window

• Child Trust Fund payments - what your child could get

The year you open the account

There are different rules for the first year you open the account. The start date is the day the account is opened but the end date is still the day before the child's next birthday.

There is often a 'cooling off' period after you've opened the account. This gives you a chance to change your mind and open a different account without any penalty. You can't pay in any money until after the cooling off period, so try not to delay opening an account.

If you do, and the cooling off period ends after the child’s next birthday, you could lose out on the first year's limit of £3,600.

If the £3,600 limit isn't used up

If the £3,600 limit isn't used in one year, you can't carry any unused amount forward to the following year to make up the difference.

For example, if you pay £2,600 into the account one year, you can't add an extra £1,000 on top of the £3,600 limit the following year.

More useful links

• Savings and investments - information from the Money Advice Service website Opens new window