Child trust funds

A Child Trust Fund (CTF) is a tax-free saving account for children. It was set up if:

• you were born between 1 September 2002 and 2 January 2011, and

• your parents or guardian received Child Benefit.

You might also have an account if you were in care and being looked after by your local authority.

Most accounts were opened with at least £250, so, with interest or investment growth, this could be worth a lot more now.

Child Trust Funds have since been replaced by Junior ISAs, so only existing accounts remain. 

What you can do with a Child Trust Fund depends on your age:

• up to age 16 your parent or guardian must manage the account, such as:
  • paying in money – up to £9,000 a year 
  • switching to a new provider 
  • transferring it to a Junior ISA.
• at age 16 you can manage the account yourself 
• at age 18 you can access the money, so you can: 
  • leave it where it is (it’ll just change to an adult ISA) 
  • move it to a different type of savings account 
  • spend it. 

See what to do with a Child Trust Fund when you turn 18 for more help.

Use the free Find a Child Trust Fund toolOpens in a new window at GOV.UK if you’re not sure you have an account or lost the details. HMRC should reply by post within three weeks.

Or you can use The Share Foundation’s free toolOpens in a new window to find your lost Child Trust Fund account.

Don’t pay to find your fund! These tools are free and you only need your National Insurance number and date of birth. There is no need to pay someone to find it for you.

Parents and guardians of qualifying children were sent vouchers to set up a Child Trust Fund. They could choose to open:

1. A cash Child Trust Fund – to receive tax-free interest on the money, or 
2. A shares-based Child Trust Fund – to invest the money on the stock market, either: 
   • choosing their own investments, or 
   • investing in ready-made funds. 

If the voucher wasn’t used within a year, HMRC set up an account instead – called a Stakeholder Child Trust Fund. This put the money in a wide range of investments, with a capped annual fee of 1.5%.   

You’re able to manage your own Child Trust Fund when you turn 16. Until then, it’s down to your parent, guardian or the Share Foundation if you’re in care.

But the options are the same until you turn 18: 

• leave the account with the same provider

• transfer it to a different Child Trust Fund provider

• transfer it to a Junior ISA.

Junior ISAs normally offer higher interest rates and lower investment charges than Child Trust Funds. But if you transfer to a Junior ISA, you can’t switch back to a Child Trust Fund.   

See our guide to Junior ISAs for more information or MoneySavingExpert for a list of the top paying Junior ISAsOpens in a new window

You can access the money in your Child Trust Fund when you turn 18. Your provider will usually write to you a month or two before to ask what you’d like to do. 

Here are your main options:

1. Move the money to a new savings account and carry on saving – see how to find the best savings account for more help.
2. Consider investing the money – see a beginner’s guide to investing.
3. Spend it.

Or you could do a combination of these. If you do nothing, your money will be held in a ‘protected account’ until you contact your provider.

If your child is unable to make their own financial decisions, and you don’t already have a Power of Attorney, you’ll need to apply for a court order. You can’t access the account when they turn 18 without this. 

In England and Wales, you won’t usually pay court fees if you apply before the child's 18th birthdayOpens in a new window, are on a low income or need the money to support the child’s future – see GOV.UK for more information.   

In Scotland, the Access to Funds fee is usually waived to access a Child Trust Fund.