'The sooner, the better' is good advice when it comes to opening a Child Trust Fund (CTF) account. This is because the sooner you open the account the sooner your child's money starts to grow.
The CTF voucher you have received must be used by the expiry date printed on it. If you miss the expiry date your child won't lose out on the CTF, as HMRC will open a CTF account for your child.
What happens when your child turns 16
When your child turns 16 they are entitled to manage their own CTF account. When they register with the provider as the new 'registered contact' they will receive the annual statements and will be able to move the account or change the type of account. But they will not be able to withdraw money from the account until they reach 18.
More information about the registered contact
What happens when your child turns 18
Once your child turns 18 the account will no longer be a CTF account and they will have to decide what to do with the money. They may decide to withdraw some or all of the money or they may decide to carry on investing by moving the money to another type of account. It is not possible now to say what types of account will be available when the first CTF accounts mature in 2020 but there may be tax-efficient savings and investment accounts, just as there are today.
FAQ
Further information about opening an account
