How to access a Child Trust Fund at 18

If you were born in the UK between 1 September 2002 and 2 January 2011, there's a good chance a Child Trust Fund (CTF) was set up in your name. When you turn 18, that money is yours to access, but many young people aren't sure who holds their fund or how to access it. 

This guide walks you through everything you need to know, including how to track down your Child Trust Fund and the different options available to you once your account matures.

What is a Child Trust Fund?

A Child Trust Fund is a long-term savings account that the Government set up for children born in the UK between 1 September 2002 and 2 January 2011. The Government made an initial contribution, varying based on when a child was born and the family’s financial situation. Parents, family members and friends are also able to contribute, up to an annual limit of £9,000, calculated from birthday to birthday.

The scheme closed in 2011, but that doesn't mean your CTF stopped growing. Depending on how yours was set up, it will have either earned interest or been invested in stocks and shares. Stock-based CTFs had the potential to go up or down over time, but historically, tended to deliver higher growth than interest alone over the long term.

For more information on Child Trust Funds, visit our easy-to-follow guide.

When can I access my Child Trust Fund?

You can access the funds inside your Child Trust Fund from the date of your 18th birthday. Just be aware that your CTF provider will ask you to verify your identity before anything can be paid out.

Before that, the funds are locked in and can't be withdrawn, not even by your parents or guardians. From 16, you have the option to take over the management of your account, including transferring to a new provider, but you won't be able to withdraw the money until you turn 18.

How to find your Child Trust Fund

Not sure where your account is held? You're not alone. Many young people have lost track of their CTF, especially if their family has moved house or changed contact details over the years.

The good news is that HMRC has a free online tool to help you track it down. Here's how:

• Visit the HMRC Child Trust Fund lookup service
• Follow the steps on the site and fill out your details
• HMRC will send a letter with the details of your Child Trust Fund provider
• Contact that provider directly to get your account details and start the process of accessing your funds

If you were in care, the Share Foundation can help you locate and access your account, they support young people from age 16.

How to access a Child Trust Fund at 18? (Step-by-step)

Here’s a step-by-step guide on how you can access your Unity Mutual Child Trust Fund at the age of 18:

Note: This process is for Unity Mutual and is not going to look the same for every provider, so make sure to follow your provider’s step-by-step instructions.

*Terms and conditions apply to all our products. **The Unity Mutual Stocks and Shares Flexible ISA is invested in the stock market and the value may go down as well as up. Capital at risk.

Choosing what to do with the funds

If you have just turned 18, here are the maturity options available for you to explore:

• Stay invested 
• Split it
• Full withdrawal

Stay invested and let it grow

There are a few options you can choose from if you are looking to keep growing your money with Unity Mutual:

Lifetime ISA: Designed to help you save for your first home (or later life). The Lifetime ISA is open to people aged between 18-39 and has the benefit of 25% Government bonus on every £1 you save each tax year. You can contribute up to £4,000 into your Lifetime ISA with a maximum Government bonus of £1,000 per tax year.

As this account is designed for first-time buyers there is a 25% withdrawal fee if you withdraw for any reason that isn’t a deposit on an eligible house purchase, or once you turn 60. As this is applied to the full amount being withdrawn, it will result in you getting less back than you put in.

Stocks and Shares Flexible ISA: You can invest up to £20,000 each tax year, and with Unity Mutual you can open an account with either a £25 lump sum or a £10 Direct Debit. 

There is no Government bonus with this account, but there are also no withdrawal charges, so you can take money out without being penalised. As the account is invested in stocks and shares, your capital is at risk, and the value can go up and down with the performance of the underlying fund. For this reason, people often use a Stocks and Shares ISA for building wealth over the medium to long-term to smooth out market fluctuations.

Split it. Spend some, save some

Another approach is to save or invest some of your money and withdraw some to spend on something you want or need.

For example, you could open a Lifetime ISA, or invest some in a Stocks and Shares Flexible ISA, and withdraw some to put towards a car or university supplies.

Withdraw everything

You also have the option to withdraw everything from your CTF.  You don’t need to make a decision straight away, if you don’t withdraw the funds we’ll continue to manage them for you. It's important to take the time to research and think through what works best for your individual situation.

Book a call to speak to one of our team to discuss your options.

Can you access a Child Trust Fund before 18?

You can take control of your Child Trust Fund from the age of 16, by becoming the registered contact. You won’t be able to withdraw any of the money before you turn 18, but you can do the following:

• Contribute your own money up to the maximum CTF yearly allowance
• Change the account provider 
• Change the account e.g., from a CTF into a Junior Cash ISA or a Junior Stocks and Shares ISA

Can parents withdraw from a Child Trust Fund?

No, in most cases, the parent or guardian can’t withdraw from the Child Trust Fund. Even though they will have managed the account, the account still belongs to the child, so it’s their decision what happens with the money when they turn 18.

The only exceptions are is in the case of terminal illness or death. If the child is 18 or over and lacks the mental capacity to manage their own finances, the parent or guardian may also be able to withdraw on their behalf, but this does not apply if the child is under 18.

How much might be in my Child Trust Fund?

The amount in your account depends on a few factors, including the initial Government contribution, any additional contributions made over the years, and whether it’s held in a Cash CTF or a Stocks and Shares CTF. If you want to know how much is held in your Unity Mutual CTF, you can use our online policy value tool.

What next for your Child Trust Fund?

Now that you can access your Child Trust Fund, you have the freedom to decide what happens next. Some people choose to withdraw the money, while others prefer to keep it saved or move it into another account to continue growing over time.

Want to find out more? While we’re unable to advise on what you should do with your money, we can provide you with the details of our product to help you make an informed decision. Contact us today to speak with one of our friendly team members.

Alternatively, you may want to speak to an independent financial adviser at unbiased.co.uk to ensure any decisions or investments aligns with your financial goals.

What if my child doesn't have the capacity to manage their finances?

If your child has a disability and is unable to manage their own financial affairs, you may need to apply for the authority to manage their CTF on their behalf. This is handled through a specific process, and you can find more information and guidance on what to do in this UK Government guide.  

*Terms and conditions apply to all our products. The Flexible Stocks and Shares ISA is invested in the stock market and the value may go down as well as up. Capital at risk.