Child Trust Funds explained: what they are and how to access yours

Child Trust Funds (CTFs) were government-initiated savings accounts introduced in 2002 to help children build savings for adulthood. The scheme closed to new accounts in 2011 when the government replaced it with Junior ISAs, but existing CTFs continue to grow tax-free. Every child born between 1 September 2002 and 5 January 2011 was entitled to a CTF — the government contributed £250 (or £500 for lower-income families). Parents, family, and friends could also contribute up to £9,000 per year (the current Junior ISA limit). The money belongs to the child but is locked away until they turn 18.

Millions of people have forgotten about their CTFs, leaving billions of pounds unclaimed. Finding yours is straightforward. The easiest method is using the government's free CTF finder service at gov.uk/child-trust-fund. You need your National Insurance number and date of birth. If your parents don't know which provider holds your CTF, the finder service will tell you. Some people moved house and never updated their address with the CTF provider — if this happened, your CTF might be with a small, specialist provider. The CTF finder is the quickest way to track it down.

The amount in your CTF depends on three factors: the initial government contribution (around £250-£500), additional contributions from family and friends over the years, and the investment returns achieved by your provider. If your parents invested the full amount and added regular contributions, you could have several thousand pounds. Some estimates suggest there are around 12 million unclaimed or forgotten CTFs worth a total of over £20 billion — an average of around £1,700 per account. The only way to know for certain is to find your CTF and check your balance.

When you turn 18, your CTF matures and the money becomes yours to access. You have several options. You can withdraw the entire amount as cash — but be aware this could have tax implications if you invest it outside an ISA. You can transfer the CTF to a Junior ISA to continue tax-free investing (though you can only open a Junior ISA if you haven't already). Or you can transfer to an adult Stocks and Shares ISA to continue growing your money tax-free. The best option depends on your financial situation and goals. If the money isn't needed immediately, keeping it invested in an ISA makes the most sense for long-term growth.

In most cases, you cannot access your CTF before turning 18. The money is intended to help young adults as they transition to adulthood — whether for education, a home deposit, or starting a business. However, there are rare exceptions for terminal illness, where the provider may allow early access. If your circumstances are exceptional, contact your CTF provider to discuss your options. Otherwise, the money is locked away until your 18th birthday.