Child Trust Fund

Your child may have a Child Trust Fund (CTF) account if they were born between 1 September 2002 and 2 January 2011, as long as you received at least one child benefit payment for them before 4 January 2011.  HMRC sent each eligible child a CTF voucher which varied from £50-£250, to be used to set up an account in the child’s name.  

Can I still open one for my child?

It is no longer possible to open a CTF, but you can open a Junior ISA (JISA) instead. As there are more JISAs on the market, this means you should be able to find a better rate of return than was available from a CTF.

If your child currently has a CTF then you can transfer this to a JISA if you wish. Talk to your adviser about whether this is a good idea.

Who controls the CTF account?

If you are the ‘registered contact’ for the child and set up the CTF you can manage the account until the child is 16.  When the child is 16 they can manage their own account if they choose to, but cannot withdraw the money until they are 18.  If at 16 the child does not want to manage the account, the registered contact may continue to do so.  As a registered contact you have the ability to manage the account type and account provider.

Find a whole of market financial adviser to discuss more ways to plan financially for your children.