Important info
Giving your child a helping hand.
Clubcard Points Offer
Simply open a Child Trust Fund before 25th June 2008 and you will receive 250 points for opening the Fund and a further 250 when you set up a direct debit. Its our way of saying thank you.
Terms and conditions
The 250 points will appear on your Clubcard statement following the date the Fund is opened and if you set up a direct debit, the 250 points awarded for setting this up will appear on your statement following the date your first payment is made.
Note that points can take up to 28 days from the date the Fund is opened, or direct debit payment made, to reach your account. Tesco Personal Finance reserves the right to alter, cancel or withdraw the promotion without prior notice. The promotion does not apply to revenue allocated accounts. One offer per Fund opened.
The Tesco Child Trust Fund
As you will not be receiving advice about the Child Trust Fund you should make sure that it is suitable for your child's future needs.
The Tesco Child Trust Fund is A Stakeholder Account which invests in companies' shares but the account has to follow Government rules to help reduce risk making it a sound home for you child's investment. Although our Child Trust Fund meets the Governments standards, it is not a guarantee of future performance.
There are also 2 other types of Child Trust Fund, a cash fund and a non stakeholder fund. For more information on these types of account visit the Government web site at www.childtrustfund.gov.uk (new window).
The Tesco Child Trust Fund invests primarily in a mixed portfolio of UK equities (companies' shares) and bonds, so the better they perform the more it should grow
The value of shares can fall as well as rise, but the account has to follow Government rules to help reduce the risk. Your child's money is spread over a range of investments.
When your child turns 13, money invested in shares is gradually moved to lower risk investments to help safeguard your child's money as they approach 18. No withdrawals can be made from the account before the child turns 18.
Accounts that invest in shares almost always produce a better return than savings accounts. In fact, this has been the case for every 18-year period in the last 40 years.
The charge on the stakeholder account is limited to no more than 1.5 percent a year - which means the charge can be no more than £1.50 for every £100 in the account. The charges on all other types of CTF account are not limited in this way.
What the child gets back from the investment is not guaranteed. It will depend on investment performance and the charges applied to the account.
Additional payments into the account
Anyone can pay into the account. Parents, grandparents or any other family member or friend can pay money into the account up to a combined total of £1,200 each year. Why don't you set up a Direct Debit to make this easier.
You should also bear in mind that any contributions made to the Child Trust Fund cannot be returned to the person making the contribution.
Keeping you informed
We will send you an annual statement to help you keep track of how well the account is performing; you can also call the Customer Service Team on 0845 900 5960 at any time for a valuation.
You can find out more by visiting the Government's Child Trust Fund website at www.childtrustfund.gov.uk (new window).
Financial Services Compensation Scheme (formerly Deposit Protection Scheme)
The Financial Services Compensation Scheme, set up under the Financial Services and Markets Act 2000, covers your account. For money held in a bank or building society in the UK the scheme will cover up to £35,000 of your claim. Most people who make deposits, including individuals and small firms, are covered. Deposits in all currencies are treated the same. For more information on the conditions of the scheme, please contact the FSCS at www.fscs.org.uk (new window).
