Child Trust Funds (CTFs) were long-term tax-free savings accounts for children born between 1 September 2002 and 2 January 2011, with most children receiving a voucher for £250 shortly after their birth.
Up to £9,000 per year (running from the child’s birthday) can be added to an existing Child Trust Fund, with the money becoming accessible by the child when they reach the age of 18. The child can also choose to manage the account themselves from age 16 if they wish.
Of the 6.3 million Child Trust Funds that were opened, it’s estimated that around 670,000 of them are “lost” – meaning the account holders have forgotten about them or might never have been aware that they existed. You can search for a lost Child Trust Fund account here – https://www.gov.uk/child-trust-funds/find-a-child-trust-fund.
Child Trust Funds were replaced in 2011 by Junior ISAs, meaning it is no longer possible to open a new Child Trust Fund and interest rates payable on existing products may no longer be competitive. An existing Child Trust Fund can be transferred to a Junior ISA, but it is not possible to transfer back so it is important to ensure that the Junior ISA is genuinely the better option.
As with Child Trust Funds, Junior ISAs are available in both cash and stocks & shares (investment) versions.
Please note that the link will take you to a UK Government website and we are not responsible for its content.
Investments can go down as well as up. You may not get back the original capital invested.
This article is for information only and should not be construed as advice or a recommendation. You should always seek independent financial advice prior to taking any action.
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