Child Trust Fund — finding and unlocking one

①What CTFs are and who has one

Between 2002 and 2011, every UK child born during that window automatically received a Child Trust Fund — a tax-free savings account, opened with a government voucher.

• £250 initial voucher for most children
• £500 voucher for children in low-income families
• £250 top-up at age 7 (cancelled in 2011 before some children got one)

If parents didn't open the account themselves within a year, HMRC opened one automatically with a chosen provider. Many families forgot or never set up online access.

The Share Foundation, a charity tracking unclaimed CTFs, estimates the unclaimed pot total is over £1 billion as of 2024. Most are worth £1,000–£3,000 today, after 13–22 years of growth.

②How to find a lost CTF

HMRC runs a free online finder service at gov.uk/child-trust-funds/find-a-child-trust-fund. You'll need:

• The child's full name and date of birth
• Their National Insurance number (issued automatically around age 16, posted to your address)
• A Government Gateway account (or set one up; takes 15 minutes)
• For the parent: ID confirmation (passport / driving licence / P60)

HMRC responds within 3 weeks by post with the name of the provider holding the CTF (e.g. OneFamily, Foresters Friendly Society, Yorkshire Building Society, Engage Mutual). You then contact the provider directly to access the account.

③CTF vs JISA — which is better now?

The original CTFs were divided into three types when set up:

• Cash CTF. Pays interest. Most stuck on legacy rates of 1–2% AER for years — far below the 4–5% available on modern Cash JISAs.
• Stakeholder CTF. Invested in stocks via a "stakeholder" framework. Fees capped at 1.5% but often locked into one fund with no choice.
• Shares CTF. Stocks & Shares investment with full choice. Better returns potential but higher fees.

In 2026, most CTFs are worse than their JISA equivalents on either fees, rates, or both. Transferring is usually sensible.

The transfer is straightforward — ask the new JISA provider to initiate the move. The CTF closes, the JISA opens, no tax impact, full balance preserved. Most modern brokers (Fidelity, Vanguard, AJ Bell, Hargreaves Lansdown, Interactive Investor) accept CTF inbound transfers.

④What happens at 16 and 18

CTFs and JISAs work the same way at these ages:

• Age 16: The young person can manage the CTF (choose investments, switch providers, view statements). They cannot withdraw.
• Age 18: The CTF "matures". Three options:
  • Take the cash. The young adult requests withdrawal — the money lands in their bank account.
  • Roll into an adult ISA. Maintains the tax wrapper. Counts toward the £20,000 annual ISA allowance only for the year of conversion.
  • Do nothing. The provider usually moves it to a default product (often a Cash ISA at the provider's standard rate) until the holder decides.

⑤Five things to do this month

1. Establish whether your child has a CTF (born 1 Sept 2002 – 2 Jan 2011 = yes).
2. Use gov.uk/child-trust-funds/find-a-child-trust-fund (free, 3 weeks).
3. Log into the provider once located. Check the balance and the fund choice / rate.
4. Compare to current Cash JISA rates (Moneyfacts compares) and S&S JISA fees (Monevator publishes comparisons).
5. If transferring makes sense, the new JISA provider does the work — you fill out a one-page transfer form.

If your child is approaching 18 and the CTF is meaningful, read the 18th-birthday handover guide. Two-thirds of CTF holders take the cash immediately at 18 — preparing the conversation early changes the outcome.