With billions going unclaimed every year in Child Trust Funds, make sure you're in the know and don’t miss out on claiming yours. Bex defines Child Trust Funds (CTFs) and why they're crucial for securing your child's financial future.

So… What is a Child Trust Fund (CTF)?

A Child Trust Fund is a long-term savings or investment account specifically designed for children in the United Kingdom. Launched in 2002 by the government, CTFs aim to provide a financial head start for children as they grow.

Who has a CTF?

If your child was born in the UK between 1st September 2002 and 2nd January 2011, they should have a CTF.

How Does a CTF Work?

When a child is born in the UK, the government contributes an initial sum to kickstart their CTF account. Parents, guardians, or relatives can then add to this fund annually, up to a specified limit. The money is typically invested in stocks, shares, or cash, with the goal of generating growth over time. Importantly, funds within a CTF remain locked until the child turns 18, giving them access to the money as they transition into adulthood.

Key Features and Benefits

• Tax-free status - Any interest or returns generated within the fund are exempt from income tax or capital gains tax, making it a tax-efficient savings option.
• The funds are held in the child's name, they don't impact the parents' savings limits or tax liabilities.
• Starting to save for a child's future from an early age, families can build a substantial nest egg over time, providing financial security for crucial milestones such as university expenses or a first home deposit.

How do you find your child’s CTF?

Finding your child’s CTF has never been easier, Bex has designed a section in our app specifically for this. Just download the app to get started. We take the stress and confusion out of searching for it.

Child Trust Funds play a vital role in securing a child's financial future. With their tax-efficient status and long-term investment approach, CTFs offer families a solid foundation for building financial security and providing opportunities for the next generation.

If you're looking to give your child the best possible start in life, Download the Bex app to start your child’s financial journey.