The forgotten fortunes

FIVE-MINUTE GUIDE TO... CHILD TRUST FUNDS

- By Harvey Jones

CHILD Trust Funds (CTFs) may sound like a relic from another age, yet millions are sitting untouched and forgotten, holding thousands of pounds that could make a big difference to hundreds of thousands of young adults.

The Government launched CTFs in 2005 for all children born between September 1, 2002, and January 2, 2011. Each child received a voucher of up to £250, or £500 for those from lower-income households, to help get them started in life.

In some cases, the Government made a second payment when the child turned seven. Over the lifetime of the scheme, 6.3 million accounts were opened.

The idea was to sow the seeds of a savings habit, but the scheme was later scaled back and closed to new applicants in January 2011. Junior ISAs replaced them later that year.

Despite the change, the existing CTFs kept running and still exist today.

The first accounts started maturing back in September 2020, when the children turned 18.