My Child Trust Fund has matured - what should I do with the money?

Full answer

Child Trust Funds were opened for children born between 1 September 2002 and 2 January 2011. The account automatically matures on the holder's 18th birthday, at which point control passes from the registered contact (usually a parent) to the young adult. From that date the provider can no longer accept contributions, and the funds sit in a 'matured CTF' wrapper that stays tax-free until you decide what to do. You have three main options. First, withdraw the cash - it is yours with no tax to pay, as CTF growth is exempt from Income Tax and Capital Gains Tax. Second, leave it where it is; many providers keep it in a protected tax-free account, though interest or charges may not be competitive. Third, transfer it into an adult ISA. This is usually the smartest move if you want to keep investing or saving tax-free. The key 2026/27 detail: a matured CTF can be transferred into an ISA without it counting against your GBP 20,000 annual ISA allowance. So if you have, say, GBP 9,000 in a matured CTF, you can move the full amount into a cash or stocks-and-shares ISA and still have your entire GBP 20,000 allowance available for new subscriptions that year. You can also open a Lifetime ISA (LISA) if you are under 40, earning the 25% government bonus (up to GBP 1,000 a year) toward a first home or retirement. Many matured CTFs go unclaimed because the young adult does not know it exists. If you are unsure, you can trace yours via the gov.uk 'find a Child Trust Fund' service using your National Insurance number. Once located, compare the provider's rates and charges against open-market ISAs before deciding whether to keep, transfer, or withdraw. Use an ISA or savings calculator to model future tax-free growth before you move the money.

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