Changes being made to your Cash CTF on
23 October 2020

Frequently asked questions

What interest rate am I getting?

You can view the latest OneFamily Cash CTF interest rates here: www.onefamily.com/interest-rates

To find out which rate you are currently getting you will need to know the balance of your CTF account as different rates are paid for different balances – this can be easily found via our Online Account Management service at www.onefamily.com/oam

If you haven’t registered for our Online Account Management service it’s easy to do so, just follow the registration instructions on the web page above.

How is my interest paid?

What changes are you making to interest rates?

We are making four changes to Cash CTF interest rates – all of these changes are effective from 23 October 2020:

We are changing the interest rate tiers

We have different levels of rates that apply depending on the balance in your account. From 23 October we will be adjusting the interest rate tiers as below:

Tier number Interest rate tiers to 22 October 2020 Interest rate tiers from 23 October 2020

1 <£750.00 <£1,500.00

2 £750.00-£1,499.99 £1,500.00-£2,999.99

3 £1,500.00+ £3,000.00+

For example. If your account value is £1,200 you will move from tier 2 to tier 1. Similarly, if your account value is £1,600 you will move from tier 3 to tier 2.

Tier number	Interest rate tiers to 22 October 2020	Interest rate tiers from 23 October 2020
1	<£750.00	<£1,500.00
2	£750.00-£1,499.99	£1,500.00-£2,999.99
3	£1,500.00+	£3,000.00+

We will also be changing the interest rates that apply to each tier

Tier number	Interest rate tiers to 22 October 2020	Interest rate to 22 October 2020	Interest rate tiers from 23 October 2020	Interest rate from 23 October 2020
1	<£750.00	0.45%	<£1,500.00	0.10%
2	£750.00-£1,499.99	0.85%	£1,500.00-£2,999.99	0.30%
3	£1,500.00+	1.35%	£3,000.00+	0.55%

For example. If your account value is £1,200 your interest rate will change from 0.85% to 0.10% and if your account value is £1,600 your interest rate will change from 1.35% to 0.30%.

We are also removing the link between our CTF interest rates and the Bank of England Base Rate
Previously your account interest rates were calculated by adding a percentage to the underlying Bank of England base rate – they effectively ‘tracked’ this rate. From 23 October 2020 your interest rate will no longer be calculated in this way but will be set as a variable amount of interest that may change in future but won’t necessarily change when the Bank of England base rate changes.
We are changing the Bank we use to hold money from your Cash CTF

Why are you changing my rates?

Why are you changing the interest rate tiers?

Our interest rate tiers have been in place for a long time now, whilst, like the rates, we have tried to keep these tiers consistent for our customers, current pressure on underlying interest rates has resulted in a need for us to re-structure the way we pay these rates.

Making this change will ensure we can continue to run our business sustainably for our customers who, as a mutual, are ultimately the owners of our business.

What has driven this change?

With Covid 19 came unprecedented economic pressures for the UK Government, the result of this was the need to reduce the Bank of England base rate. We now find ourselves with an historically low Bank of England base rate of 0.10% and the possibility of negative rates looming, as a result, there is more pressure than ever on the interest rates in the savings market.

As OneFamily isn’t a bank, we are unable to take cash deposits ourselves, instead we have to find a bank that will accept our cash CTF deposits. We rely on the interest rates these other banks pay us to enable us to run our CTF accounts, provide the best possible service to our customers, and also to pay our customers a rate of interest.

With all of the current pressures on interest rates, we have found it increasingly difficult to find interest rates that would allow us to keep our current interest rates unchanged.

When is the change effective from?

I thought my money was saved with you - why do you need to work with a bank?

We will always ensure that our customers benefit from the protection of the Financial Services Compensation Scheme when we choose who to place CTF deposits with.

Why are you changing the bank deposit taker?

Our current agreement with Sainsbury’s Bank comes to an end on 23 October 2020 – in order to continue to earn interest we need to move our cash CTF deposits to another bank. The best rates we are able to achieve in the current market are with Close Brothers, so this is where we will be moving CTF deposits with effect from 23 October 2020.

To optimise the rates we gain for our customers we may need to move banks again in the future, or we may potentially place CTF deposits with multiple banks. For up to date information on which banks we use you can visit www.onefamily.com/interest-rates at any time.

Could the bank you use for CTF deposits change again in future?

Where can I find details of the deposit taker you use?

Will I still be protected by the Financial Services Compensation Scheme?

What options do I have if I'm not happy with this change?

You can transfer your OneFamily CTF to another CTF or Junior ISA at any time, free of charge.

OneFamily provides stocks and shares variants of both CTF and Junior ISA products, and these are available for transfer at any time. If you are interested, please call us on 0800 220385 or visit:

For CTF transfers: https://www.onefamily.com/child-trust-fund/ctf-transfers/

For Junior ISA transfers: https://www.onefamily.com/junior-isa/child-trust-fund-transfer/

Alternatively, if you wish to remain in a Cash product, you will need to find another provider who offers a cash CTF or cash Junior ISA. To transfer to another provider, you will need to contact the new provider and they will arrange for your CTF to be transferred over to them.

Again, if you have any questions about this process, we will be happy to help on 0800 220385.

Changes being made to your Cash CTF on 23 October 2020