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Important information about your child's Child Trust Fund

 

As your child approaches their 18th birthday, they will be reaching that important milestone of their life into adulthood – where they will also have the option to access to the money in their Child Trust Fund.

We wanted to let you know what happens before they reach age 18, including their options, our process and what you could help them with.

Before your child reaches 18

Your child may become aware of their CTF before their 18th birthday from their friends and the information HMRC provides them with their National Insurance number, which is sent before their 16th birthday. 

We will send a letter to your child 6 weeks before their 18th birthday informing them about their Child Trust Fund – which also includes a link to a webpage providing them with more information about CTF Maturity >

They can create their MyPlans account from age 15 – and view their Plan value, past performance, their details (most can be updated online) and have access to resources to help them learn more about their Child Trust Fund, investing and Foresters. Once they are 18 they will be able to make their decision of what to do with their savings through their online MyPlans account. 

 
18 year old boy and girl looking at MyPlans on their phone

At age 18

On their 18th birthday your child’s Child Trust Fund will mature and be referred to as a Matured CTF ISA.

At this point they will be the person responsible for managing the Plan, as stated by the Government. This means you will no longer be managing the Plan, and therefore cannot make any updates. Further contributions from yourself and family can no longer be made, unless your child decides to reinvest into an ISA.

If you are the Registered Contact, you will receive the final statement on their 18th birthday. Going forward any Plan value information can only be shared with the Planholder, your child. We will not disclose this information with anyone else – no matter how long they have been contributing to the Plan for.

If you are the Registered Contact, or any payer has a MyPlans account, when your child turns 18 you will no longer see the Plan online.

 

Before your child reaches 18 checklist

✔ Details
Check your child’s details with us are up-to-date. Your child can update their details on their MyPlans account. As the Registered Contact you cannot make any changes to the Plan once your child is 18.

✔ Email address
Your child will need their own email address to set up their MyPlans account.

✔ Bank Account
If your child wishes to take some or all of the money, they need to have a bank account in their own name. Your child is the only person who is entitled to the money, and therefore it cannot be paid into anyone else's bank account. Find out what happens with an encashment >

 

Staying safe online

We take the security of yours and your child’s personal details, personal and financial information very seriously. No matter how sophisticated our controls are, we can’t do it alone.

Ensure your child avoids sharing their Plan details, or their MyPlans account via messages, images and/or videos online, including social media. This information can be viewed by the public, which could include criminals who will take advantage of your data. Here are some tips to keep safe online and prevent fraud > 

Your child's options

We know that most children will be looking to their parents for support and guidance, so we hope the information on this webpage will cover off any question they may have for you.

 

Leave it

Leave the savings in the Matured CTF ISA, investing where it currently is.

 

Save

Reinvest the Matured CTF ISA money into a Stocks and Shares ISA.

 

Encash all

Withdraw all the money, which will close the Plan.

 

Save and encash

Do a bit of both and continue to save and encash some of the money.

 

If your child decides to reinvest into a Stocks and Shares ISA, they will also have the option to add a Lifetime ISA. To make their decision your child will need to create their MyPlans account

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What should my child do?

There are many factors which may persuade your child towards the direction that they choose, and the decision is theirs, however they are likely to look to you for guidance.

 

The money could be put to good use to help purchase a first car, go towards university costs, or even travel the world. However, the money doesn't have to be spent all in one go, and this is why we provide the option of doing both. When there is a savings pot, the concept of saving is even easier! Continuing to save, by reinvesting into a Stocks and Shares ISA, means the money could help your child’s savings go further towards future milestones as an adult, and by saving in a Lifetime ISA towards something more specific (home or later on in life). They have the option of making an encashment when they make their decision, or from the Stocks and Shares ISA at any time, so if they do want access to some money for a treat or towards a cost now they can do both.

 

If your child chooses to leave their savings where they are then they will continue to invest in the stock market, as does the Stocks and Shares ISA and Lifetime ISA, all options give the opportunity for growth to your child’s savings.

 

Want more information?

We offer a financial planning service, where our Financial Advisers can provide more information about the options available and our ISA. Our Financial Advisers do not charge for any advice given. Talk to a Financial Adviser >

Further Child Trust Fund maturity questions

 

How do they make their decision online?

Once your child has created their MyPlans account, from their 18th birthday they will be able to make their decision online. From age 18, when your child logs in to their MyPlans account, they will see a yellow banner (notification) along the top. This banner will allow them to start their journey to make their decision. On the first page they will be able to decide whether they would like to continue to save in an ISA and/or encash the money. If your child decides to leave the money where it is, they do not need to do anything. If your child hasn’t already activated their MyPlans account they can do here >

On the first screen your child will be asked how much they want to save into a Stocks and Shares ISA (if any) and how much they would like to encash (if any). 

Whilst we process your child's instruction the Plan value will show as £0 until the request is complete.

What happens when my child encashes any money?

Your child will need to have a bank account in their name, as the money belongs to them and therefore cannot be paid into any other account.

We will do some checks to make sure that the bank account belongs to your child. However if we are unable to automatically do these checks, we will require a bank statement of your child’s bank account, dated within the last 12 months. Please note that although we accept electronic copies in image format, we cannot accept a screengrab – best way is to download this as a PDF. Our Customer Services team will then manually verify these documents.

There are several ways your child can obtain a bank statement: 

  • Download a PDF bank statement from online banking 
  • Visit a local branch and ask the bank to print out a bank statement 
  • Contact the bank provider and request a paper bank statement to be posted to home address

When the bank account is verified the encashment will be processed. This can take between 3-5 working days. If the payment is being made to an international bank account, once approved it can take 10-14 days to appear in the bank account.

These checks are put in place to ensure your child’s money is protected, so please bear with us whilst we process the request.

If your child chooses to make a full encashment, once the request has been received the Plan value will show as £0 whilst we process this request.

How does my child move their money into a Stocks and Shares ISA?

This is a great way for your child to continue saving towards their future. All your child needs to do is read the declaration and their ISA will be in the process of opening. Any money from the Matured CTF ISA will not count towards their ISA allowance for that tax year. Whilst we process your child's instruction the Plan value will show as £0 until the request is complete.

How can further contributions to the ISA be made?

Once they have decided to open a Stocks and Shares ISA, you and your child can make contributions to their ISA straight away – through their online MyPlans account by selecting the ‘Add money’ button.

If we are unable to verify the payer we will also require personal identification, where you will need to provide a form of ID, as well documentation such as a utility bill.

What if my child wants to open a Lifetime ISA? How can they add the Lifetime ISA to their Plan?

Once the ISA is set up, your child will be able to add the Lifetime ISA element. They will see this on their homepage or by the three dots on their ISA details on their homepage.

They can move money from their Stocks and Shares ISA and/or add new contributions.

My child is unable to manage their money, what do I do?

Please contact Customer Services Maturity team who will be able to advise you on the process and next steps. 0333 600 0333 - Option 3

What is an ISA?

An Individual Savings Account (ISA) is a popular way to save tax-efficiently – meaning there’s no tax to pay on any growth or income earnt from the investment.

Every tax year starting 6th April, your child can save up to the annual ISA allowance. This is set by the Government and is currently £20,000 this tax year. Any money reinvested from their Matured CTF ISA into their Stocks and Shares ISA will not count towards their ISA allowance. Why not also start saving for your own future in our ISA >

 

What ISAs do Foresters offer?

We offer a Stocks and Shares ISA and a Stocks and Shares Lifetime ISA.

Our ISA is the only one on the market that gives the option to combine both a Stocks and Shares ISA and Lifetime ISA in one Plan. Contributions start from as little as £20, up to the £20,000 contribution allowance, of which £4,000 can be saved into the Lifetime ISA. Investment decisions are made on your behalf by the fund managers at Schroders  - so no need to worry about making any investment decisions.

Top up via phone with our friendly Customer Services team 

Stocks and Shares ISA

A Stocks and Shares ISA is a tax-efficient savings account which allows your child to save up to £20,000 this tax year. By investing in a Stocks and Shares ISA, there is potential for growth which doesn’t count towards the overall tax allowance.

If your child is investing for the medium to long-term, our ISA may be more suitable for them. Investing in an ISA could offer more potential for growth rather than saving in a bank or building society account, where inflation could eat away at the interest made.

Our Stocks and Shares ISA

Top up via phone with our friendly Customer Services team 

Lifetime ISA

A Lifetime ISA is available to any UK resident aged between 18 and 39. It was introduced by the Government to help first-time buyers get on the property ladder and/or to build additional savings for later on in life.

The Government offers a 25% bonus added to all amounts invested into the Lifetime ISA element, up to the maximum £4,000 each tax year, meaning the Government will contribute up to £1,000 each tax year, or £1 for every £4 saved.

Our Lifetime ISA

As with all stock market investments the value of your ISA can fall as well as rise. Tax treatment depends on individual circumstances and may be subject to change. A Lifetime ISA must be held for at least 12 months before using it towards the purchase of a first home. By saving into a Lifetime ISA instead of a workplace pension, you could lose the benefit of employer contributions and the value could affect any entitlement to means tested benefits. If you make an encashment before age 60, other than to purchase your first home, you will pay a government penalty of 25% on the encashment amount, and you may get back less than you paid in.

 

 

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