The Children's Mutual Background and Overview

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The Children's Mutual has a rich history, dating back to 1899 when it was founded by a group of parents who wanted to provide a safe and secure future for their children.

The company was initially known as the Children's Mutual Benefit Society and was set up to provide financial support to families who had fallen on hard times.

Its mission was simple: to help families in need and provide a better life for their children.

Today, The Children's Mutual is a leading provider of life insurance and savings products, with a strong focus on supporting families and children.

What Was It?

The Children's Mutual was a UK-based financial insurance and savings provider designed for children. It allowed children to save and helped prepare them financially for their future.

It was specifically designed to help parents save for future tuition fees. This was a big concern for many parents at the time.

The Children's Mutual was a trading name used by a mutual organisation. This organisation was called Tunbridge Wells Equitable Friendly Society Limited, or TWEFS for short.

TWEFS was a mutual organisation that provided a scheme for working people to help protect them against loss of income during an illness. It also helped them build a lump sum for retirement.

Change Inquiry

Credit: youtube.com, CTV - Young girl's mother hopes inquiry sparks changes

The Children's Mutual made a significant change in 2013, transferring nearly a million savings accounts to Forester Life Ltd.

This decision was driven by the high cost of running the savings and investment accounts, which had become too expensive to operate efficiently and cost-effectively.

The accounts had grown to a large number, making it difficult for The Children's Mutual to manage them effectively.

If the money had remained with The Children's Mutual, it might have continued to grow, but at a much slower rate.

Child Trust Funds

Child Trust Funds were launched by the Government in 2005, replacing TWEFS child trust funds, which were rebranded from The Children's Mutual in 2003.

The Child Trust Fund was an initiative announced by the Government in the Budget of 2003, with the goal of encouraging people to save for their children's futures.

Each child born on or after 1 September 2002 received an initial endowment of £250, with a further payment when they reached the age of seven.

UK: Norwich Union on Child Trust Fund

Credit: youtube.com, The Child Trust-Fund {possible £1,000 for nothing!}

Norwich Union has announced an alliance with The Children's Mutual to launch a Child Trust Fund product in 2005.

The Child Trust Fund is an initiative announced by the Government in the 2003 Budget, and each child born on or after 1 September 2002 will receive an initial endowment of £250.

Family and friends can contribute up to £1,200 a year to the fund.

The Child Trust Fund will help children avoid paying income or capital gains tax on their savings.

The price cap on the Child Trust Fund is set at 1.5%, as announced by the Treasury in February 2004.

Simon Quick, Norwich Union's director of product strategy, believes the Child Trust Fund will assist in marketing the Sandler range of products.

The alliance between Norwich Union and The Children's Mutual aims to encourage people to save for their children's futures.

David White, chief executive of The Children's Mutual, thinks the partnership will help families in a way not seen before.

New Child Trust Fund Business Suspended

Credit: youtube.com, Unclaimed Child Trust Funds

The Children's Mutual, one of the largest providers of child trust funds, has stopped taking new business on all but its most basic CTF accounts.

This move is a response to the government's decision to cut payments into Child Trust Funds and stop new ones from opening from January.

Existing customers will continue to run until their child turns 18, so no changes are expected for them.

The government announced it would cut payments into Child Trust Funds next month, reducing the payments at birth from £250 to £50 for most families, and £500 to £100 for families with an annual household income of less than £16,190.

Payments when children reach the age of seven will also stop.

The Children's Mutual will reconsider its position in two months, but for now, it's not taking on new business except for the standard stakeholder child trust funds.

Operations and Achievements

The Children's Mutual was a company that offered a range of products, including share-based stakeholder and non-stakeholder child trust funds.

They also provided a Sharia-compliant stakeholder child trust fund, which catered to the needs of Muslim families.

In 2008, the company received recognition for its efforts, winning the Best Child Trust Fund Provider award from Investment Life & Pensions Moneyfacts Awards.

Frequently Asked Questions

What are the benefits of children's mutual funds?

Children's mutual funds offer a disciplined investment option with lock-in periods, helping you save for your child's future needs with potential long-term real returns. They also offer the possibility of earning good returns through equity-oriented schemes.

Why has my Child Trust Fund disappeared?

Your Child Trust Fund may have been deposited into a savings or investment account by your parents, making it difficult to locate. Check with your parents or financial institutions to see if the account still exists

Greg Brown

Senior Writer

Greg Brown is a seasoned writer with a keen interest in the world of finance. With a focus on investment strategies, Greg has established himself as a knowledgeable and insightful voice in the industry. Through his writing, Greg aims to provide readers with practical advice and expert analysis on various investment topics.

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