Child Trust Fund (stakeholder account)
Originally set up by the government, a CTF is a long-term tax-free savings account for children.
A CTF is a 'stakeholder account', which means there are a certain set of rules that the provider must comply with. To transfer an account you must have parental responsibility for the child, or be the child aged 16 or over, you must also be the registered contact for the account.
CTFs were originally set up by the government to encourage long-term saving for children.
If your child holds a CTF, anyone can pay into the plan up to £9,000 each year (birthday to birthday) tax-free. Any child born in the UK between 1st September 2002 and 2nd January 2011 should have been issued with a voucher from the government. Vouchers were worth £50 or £250, depending on when the child became entitled.
The voucher enabled the parent/guardian of the child to choose a provider for the CTF. If the voucher was not used before the expiry date then the government allocated these accounts to various product providers, to ensure the children didn’t miss out on their policy.
If you think your child may have a CTF, but you're unsure who the provider is, head over to the HMRC website to find out more. Unfortunately, you cannot apply for a new CTF (only transfer an existing one) because the scheme is now closed.
Junior ISA alternative available
Find out if existing CTF is in place
Transfer an existing CTF
Children's savings
Give a child you care about the best possible financial head start in life.
