Child Trust Funds explained
If you hold a matured Child Trust Fund with another provider, you can transfer it to a Nationwide cash ISA and keep the tax-free status on your savings. To do so, you’ll need to follow the ISA transfer process. This applies even if the matured Child Trust Fund is not an ISA.
We previously offered two types of Child Trust Fund (CTF):
- A cash fund, where the money is held in a traditional bank or building society account, and
- An equity stakeholder fund, where the money is invested in company shares (known as equities).
We no longer accept vouchers to open Child Trust Fund accounts.
What's on this page
What you need to know
You can put up to £9,000 into the account each year – starting on the child's birthday and ending the day before their next one.
The Cash CTF is a Nationwide savings account. The Equity Stakeholder CTF was provided by Legal & General until 17 November 2016, when the administration and management of the Equity Stakeholder CTF was transferred to OneFamily.
Important changes to the Equity Stakeholder Child Trust Fund
Your child's Child Trust Fund is being administered by OneFamily. OneFamily are experts in child savings products and are the UK's largest Child Trust Fund provider. Owned by and run for their customers, with over £7.4 billion of funds under management.
You can find out more information about Child Trust Funds:
- on OneFamily's website (opens in a new window)
- by calling the OneFamily Customer Service Team on 0344 8 920 920, Monday to Friday from 9am to 7pm and 9am to 1pm on Saturdays.
Keep in mind, OneFamily doesn’t offer advice on the Equity Stakeholder CTF.
Paying into a Nationwide Child Trust Fund
You can pay into the Child Trust Fund:
- in branch
- using the Internet Bank
Up to £9,000 can be paid into the account each year – starting on your child's birthday and ending the day before their next one.
This limit is subject to HMRC Treasury rules and is reviewed each tax year.
Keep in mind, all payments made by you, family or friends into the account can't be taken out until the child's 18th birthday. Only your child will have access to the money at that time.
Even if you pay money into the account by error, you can't withdraw it. And we'll only close a Child Trust Fund in extreme circumstances. For example terminal illness, or in the event of death.
Paying in a little extra
Just imagine what a difference a lump sum on your 18th birthday would have made to your life. It's a time when every little helps. Contributing extra now could help with your child's future education, a deposit on a first home, or to buy a first car – whatever they want.
When your child turns 18
Any savings in the Child Trust Fund will be moved into a CTF Maturity ISA. This account is designed to be a temporary home for your child's savings until they decide what they'd like to do with it. Because of this, they won't be able to pay any more money into the account when it moves. Also, the interest rate will go down.
Here's what to do next.
Call your local branch
Whatever your child decides to do with their money, they'll need to call us in branch first. This is so we can let them know the next steps, and whether they need to actually visit a branch.
They can do this anytime from the day they turn 18.
They just need to let a member of our team know that their Child Trust Fund account has matured, and we'll take care of the rest.
What to bring
If your child needs to visit us in branch, they'll need to bring:
- their National Insurance number
- some ID, like a passport or driving licence
Help deciding what to do with their savings
Sometimes it can help to chat through all the options available before deciding what to do next. Especially if they'd like some help choosing a different savings account.
If so, they can make an appointment by calling their nearest branch. We can chat through our accounts and help choose one that's right for them.
When we pay interest
Tax-free interest is added to the account on your child’s birthday.
This interest does not count towards any annual allowances.
As the account is owned by the child, no further income tax needs to be paid on the interest. Child Trust Fund interest is not subject to personal income tax.
Transfer a Child Trust Fund to an equity fund
A cash Child Trust Fund can be transferred to an equity fund - and the other way round. You can also transfer from one provider to another.
We no longer offer new Child Trust Funds or the option to transfer between Nationwide cash and equity Child Trust Funds. But you can change types during a transfer to a new provider.
No matter who the provider is, you can only hold a Child Trust Fund or a Junior ISA - not both.
Transferring your Child Trust Fund to another provider
To transfer your Nationwide Child Trust Fund to another provider, you'll need to ask your new provider for the relevant transfer in form and give the details of your current Nationwide Child Trust Fund account.