Child Trust Funds explained

You can save up to £9,000 in a Child Trust Fund each year.

A year starts on the child’s birthday and ends the day before their next one.

If you are aged 16 or over, you can find your Child Trust Fund by searching The Share Foundation’s free online register.

The Share Foundation is a partner of the Department for Education.

Search the register (opens in a new window)

You can pay in online or in person

You can pay into the Child Trust Fund:

• in branch
• by cheque
• online using our internet bank
• by moving over money from another Nationwide current or savings account

This limit is subject to HMRC Treasury rules and is reviewed each tax year.

You cannot withdraw Child Trust Fund money

All payments made by you, family or friends into the account cannot 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 cannot withdraw it.

We will also only close a Child Trust Fund in extreme circumstances. For example, terminal illness or in the event of death.

If you hold a matured Child Trust Fund with another provider, you can transfer it to a Nationwide cash ISA. This will keep the tax-free status on your savings.

To do so, you will need to follow the ISA transfer process. This applies even if the matured Child Trust Fund is not an ISA.

If you don’t yet have a Nationwide cash ISA

Simply apply for a new ISA online. We will ask you during the application if you want to transfer. Compare our ISAs to find the best one for you and then start your application.

If you already have a Nationwide cash ISA

You must transfer your Child Trust Fund in a Nationwide branch.

You can find your interest rate online

You can find your interest rate by logging in to our banking app or internet bank. Alternatively, if you know the name of your account, you can use our online tool.

How we calculate and pay interest

We calculate the interest daily using the annual interest rate divided by 365, including in a leap year.

We add tax-free interest 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.

Here are the steps and what you need to do.

You will get a maturity ISA

Any savings in the Child Trust Fund will be moved into a CTF Maturity ISA with a lower interest rate.

This account is designed to be a temporary home for your child's savings until they decide what they would like to do with it.

Because of this, they will not be able to pay any more money into the account when it moves.

You will need to contact a Nationwide branch

Whatever your child decides to do with their money, they will need to call a Nationwide branch first. This is so we can let them know the next steps and whether they need to visit a branch. If they need to visit us, make sure they bring their National Insurance number and some ID, like a passport or driving licence.

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 has matured. We will take care of the rest.

We previously offered 2 types of Child Trust Fund.

Cash funds

A cash fund is where the money is held in a traditional building society or bank account.

This counts as a Nationwide savings account.

Equity stakeholder funds

An equity stakeholder fund is where the money is invested in company shares or equities.

Since 17 November 2016, this has been administered by OneFamily. It was formerly administered by Legal & General.

OneFamily are experts in child savings products and are the UK's largest Child Trust Fund provider. They are 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 (opens in a new window)

OneFamily does not offer advice on the Equity Stakeholder Child Trust Fund.

You can keep your Child Trust Fund if you or your child move to another country.

However, you should register your foreign address so we can keep in contact. You may be charged for any costs and expenses incurred by us in establishing your address or that of the child.

You can also close your account if you move abroad.