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Child Trust Funds

Last Updated 04/12/2018

A Child Trust Fund (CTF) is a long-term tax-free savings account for children. You can’t apply for a new Child Trust Fund because the scheme is now closed. You can apply for a Junior ISA instead.

Child Trust Funds (CTFs) are long term tax-free savings accounts that were available for kids born between 1 September 2002 and 2 January 2011, which they could use to deposit free cash vouchers of up to £250 (up to £500 if you were on a low income) that used to be handed out twice to each child by the Government.

You can’t apply for a new Child Trust Fund because the scheme is now closed. You can apply for a Junior ISA instead. However, anyone who still holds a Child Trust Fund can keep paying in to the account and is able switch to a new top rate at any time, just like normal savings.

You can put up to £4,080 a year into the account - the year starts on the child’s birthday and ends the day before their next birthday. Once put into a Child Trust Fund, money is locked away until the child's 18th birthday, when they'll get a lump sum that can be spent how they wish.

The choice and ongoing control of the investment belongs with the person who has parental responsibility and opens the account, and passes to the child at the age of 16.

According to HM Revenue & Customs (HMRC), there are over 700,000 dormant CTFs. Find out where your child's fund is via the link on the right.



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