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Home > Child Trust Fund and Junior ISA maturity > The next steps for your Child Trust Fund

What's next for your Child Trust Fund money?

At 18, you'll be able to log into your online account and tell us what you’d like to do with the money in your Child Trust Fund.

What are my choices?

The here-and-now option

Take all your money out now to spend how you like. You'll be able to ask us to send you a cheque or transfer the money to your bank account through your online account.

The happy medium option

Keep some money invested, but give yourself permission to spend some of it now. You'll be able to select how much to withdraw and we'll help you move the rest to an adult account.

The future-planning option

Resist temptation and invest your money for a future goal, such as setting up a business or buying your first home. The option to move your money into an adult investment product will show in your online account after you turn 18.

Want to know more about what happens when your Child Trust Fund matures? Have a look at our maturity FAQs.

Already 18 and ready to make your choice? Log in or register.

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How can I invest my Child Trust Fund money?

That depends on what you want to spend the money on in the future.

We have two products that both invest in stocks and shares but are designed for different savings goals.

Both are tax-efficient, meaning no matter how much money you make, you won’t pay any income tax or capital gains tax when you take your money out, and they both come with the option to invest in a climate-focused fund.

Our Lifetime ISA could be right for you if you want to invest your money towards buying your first home at some point in the future.
Our Stocks and Shares ISA might be a better fit if you want to put money aside for anything else or you've not yet decided what you'll spend it on.

Once you turn 18, you'll see an options in your online account to simply transfer money from your Child Trust Fund into one of these products.

Find out more about investing your Child Trust Fund money.

Choosing between a Lifetime ISA and a Stocks and Shares ISA

Both of these ISAs invest in stocks and shares. It's worth remembering that the value of stocks and shares can fall as well as rise. This is normal for this type of investment, but you could get back less than has been paid in.

For building your first home deposit

Lifetime ISA

This could be a good option only if you want to save for your first home or keep your money invested until you turn 60.

The government tops up everything you pay into a lifetime ISA by an extra 25%. You can invest up to £4,000 each tax year so that's up to £1,000 extra available!

But if you take the money out for anything other than buying your first home, HMRC will charge you a withdrawal penalty fee (unless you’ve turned 60, when you can do what you like with the money), so you need to be sure that's what you'll use the money for.

Read more about our Lifetime ISA

For investing for the future

Stocks and Shares ISA

If you want to put some money aside for university, for setting up a future business or simply for keeping your options open, an ISA might be right for you.

Our Stocks and Shares ISA is a straightforward way to start investing as all you need to do is choose which of our two funds you'd like to invest in.

Unlike a lifetime ISA, the government doesn’t top-up the money you pay into this type of ISA, but you're not limited to using the money for a house deposit. There's no withdrawal fee for taking money out.

Read more about our Stocks and Shares ISA

Stocks and Shares vs Lifetime ISA video

Not sure which is most suitable for you? Our short video explains how these two products suit different savings goals.

View Video Transcript

Stocks & Shares ISA vs Lifetime ISA

They say money doesn’t grow on trees, and they’re right. But it does grow elsewhere, like in your Child Trust Fund, which has finally reached maturity.

So, what now? Well you may want to spend some of it, but you could keep your money growing if you wanted, but how you do it and by how much depends on where you put it.

Meet the OneFamily ISA and LISA

ISA is short for Individual Savings Account, whereas LISA stands for Lifetime Individual Savings Account.

In simple terms, both are ways of saving money without paying tax on the income earned, which is very good. So, what are the differences between the OneFamily ISA and LISA?

Similarities first

You can start opening both when you’re 18. They both invest in stocks and shares, and both have a fund which takes more risk for higher potential growth and a lower risk fund for lower potential growth.

They also both have conditions dictating how you invest and withdraw your money.

Now, the differences

With ISA you can transfer in any amount of money from your Child Trust Fund and then invest up to the annual ISA subscription limit of £20,000.

LISA, on the other hand, only allows you to invest up to the current tax year payment limit of £4,000. And you can only take out LISAs until you’re 39.

Before you rush into ISA instead of LISA, LISA gets a 25% government top-up, calculated on the amount you pay in. Although to keep that top-up withdrawals from the LISA must go towards the purchase of your first UK home, or your retirement at the age of 60. Which we know seems a long way off right now, but it’s still worth considering.

Withdrawals for any other reason will be subject to a government charge of up to 25%.

With ISA on the other hand, you can access your money when you need it whatever that’s for, although our Stocks and Shares ISA is considered a medium to long-term investment too, with a better chance of performing well the longer you leave it.

Finally, the admin

Which is the same for both and it’s is very easy, because applying for and managing ISA and LISA can all be done online. You can start a OneFamily ISA or LISA by transferring your Child Trust Fund, with the option to contribute more if and when you like.

Although it’s worth remembering that investment could go down as well as up, so you could get back less than you put in.

So that’s the ISA and LISA in a nutshell. Good to know for your money to grow.

Ready to make your choice?

Register or log into your online account to let us know what you’d like to do.

If you want to withdraw some, or all, of the money in your Child Trust Fund you can choose to do this by bank transfer or by asking us to post you a cheque.

I’m not yet 18

Sit tight for now. If you’re 16 or over, you can register for an online account so you’re ready to go as soon as you do turn 18.

Register

I’m 18 but haven’t got an online account

It’s easy to register, you just need your name, date-of-birth and National Insurance number.

I’m 18 and have an online account

Log in and let us know what you’d like to do with your money. If you’re not decided, don’t worry – you can leave your money where it is while you give it some thought.