Don’t lose your child’s savings

Child trust funds turn 16 this year – but a million accounts have been abandoned. Is yours one of them?

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What you built as a child should be secured
(Image credit: Daniel Sambraus)

From this Saturday, 1 September, children turning 16 will be able to take control of their child trust fund (CTF), although they won't be able to draw any money out until they reach 18. CTFs were tax-free vehicles launched in 2002 to encourage saving, and were available to all children born between 1 September 2002 and 2 January 2011. The government added a £250 voucher at birth (£500 for families who received the child tax credit), and a second £250 or £500 voucher for children who turned seven before 1 August 2010. Parents can still add up to £4,260 a year to a CTF and the accounts now have a combined worth of £9.3bn.

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Ruth Jackson-Kirby

Ruth Jackson-Kirby is a freelance personal finance journalist with 17 years’ experience, writing about everything from savings accounts and credit cards to pensions, property and pet insurance.

Ruth started her career at MoneyWeek after graduating with an MA from the University of St Andrews, and she continues to contribute regular articles to our personal finance section. After leaving MoneyWeek she went on to become deputy editor of Moneywise before becoming a freelance journalist.

Ruth writes regularly for national publications including The Sunday Times, The Times, The Mail on Sunday and Good Housekeeping, among many other titles both online and offline.