Child Trust Funds are long-term, tax-free savings accounts and were set up for every child born between 1 September 2002 and 2 January 2011. If a parent or guardian was not able to set up an account for their child, the government opened a savings account on the child’s behalf.
The government contributed an initial deposit of at least £250, and the funds can be withdrawn once the account matures when the child turns 18. Therefore, accounts first began to mature in September 2020 when the first children turned 18.
HMRC has revealed that there are currently 5.3 million open CTF accounts, and that more than 500,000 matured CTF accounts have been claimed or transferred into an ISA since September 2020.
Families can continue to pay in up to £9,000 a year tax-free into a Child Trust Fund until the account matures. The money stays in the account until the child withdraws or reinvests it into another account.
How to check if you have a Child Trust Fund
Young adults and parents can search on GOV.UK to find out where their Child Trust Fund account is held.
If teenagers or their parents and guardians already know who their Child Trust Fund provider is, they can contact them directly. This might be a bank, building society or other savings provider.
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