for savers

My Child Trust Fund

Your guide to accessing your savings

Child Trust Funds (CTFs) are tax efficient long-term savings plans for children. They were introduced by the Government and designed to provide children with a lump sum when they turn 18.

Once you’ve turned 18, you’ll have a number of options to consider about what to do with your savings, but don’t worry there’s no rush – whilst you make a decision, your savings will be held in your sole name in a Child Trust Fund Maturity Account.

Whist your savings are held in this account they will remain tax-free. This means you’ll pay no Income Tax on the interest earned from your savings. You cannot however add further deposits to the account.

What are my options?

Although you may have that urge to spend, putting money aside for the future is a wise move. Growing it is even better. Depending on what you’re saving for there are a number of options for you to choose from.

You can continue to save by reinvesting your savings into a new or existing savings account with The Cambridge or another provider, withdraw your savings or choose a combination from these options. The choice is yours.

To protect your tax free status you may wish to re-invest your savings into an Individual Savings Account (ISA) or Lifetime ISA (LISA). If you choose to withdraw your savings or reinvest your savings into a different type of savings account, it’s important to know you’ll lose your tax-free status.

Whatever options you choose, they must cover the full balance of your account. Once your savings are withdrawn the Child Trust Fund Maturity Account will be closed.

Reinvest your savings in an ISA or LISA

An ISA can be one of the best savings accounts to help you make the most of your money as you don't pay tax on the interest it earns. It doesn't count towards your Personal Savings Allowance so you get to keep every penny. 

If you're considering transferring your savings to an ISA either with The Cambridge or another ISA provider, we have all the information you need - our helpful ISA guide should answer any questions you may have. The great thing about moving your Child Trust Fund savings to an ISA is that the deposit won’t count towards your annual ISA allowance. 

The Lifetime ISA (LISA) is designed to help you get on the property ladder, or to save for your retirement – or even both. The Cambridge does not currently offer a LISA but you are able to transfer your savings to a LISA provider, you can find out more about LISAs here. Please note that if you choose to transfer your Child Trust Fund savings to a LISA it will count towards the annual deposit limit.

Reinvest all or part of your savings into a new savings account

At The Cambridge we offer some great savings accounts to suit a variety of needs.

If you’re looking for a safe place for your savings and want the comfort of having convenient access to your money, then an easy access account might be the answer. Our easy access accounts give you the flexibility to pay money in and take it out and are ideal for short term savings.

However if you're planning for something special it really helps to have an idea of how much your savings will be worth in the future. A fixed rate bond will give you that knowledge and it will often give you a higher rate of interest because your savings are locked away for the term of the bond. Ideal if you're saving for a special purchase or for a fixed period of time.

You can find out more about the options available to you here. If you’d prefer to move your savings to another savings provider then please get in touch.

Withdraw your savings

If the urge to spend is just too great, or you already have something in mind you want to spend your money on, then you of course have the option to withdraw your savings.

Cash withdrawals can be made in store only. Our maximum cash withdrawal limit is £500 per day. Alternatively, you can request a cheque or have the funds transferred directly to your bank account.

What’s next?

So we can give you control of the account, please call into one of our stores with a form of photographic identification. Alternatively, please contact us on 0345 601 3344 and our team will talk you through the process.

Once we’ve verified your identity, you can let us know what you’d like to do with your savings by calling us or by visiting your nearest store.

Get in touch

If you have any questions or would like more information about your savings options, please call us on 0345 601 3344 or email thecambridge@cambridgebs.co.uk. There’s also lots of useful information available at Gov.uk.

It's also important to know that tax treatment and rate of interest payable will depend on individual circumstances and may change in the future.

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