GOOD NEWS FOR CHILD TRUST FUNDS

▤ Summary

The first Child Trust Funds are due to mature in September this year and, under current arrangements, will be automatically cashed in once the account holder turns 18. CTFs could instead be automatically rolled over into another account that continues to shelter the young saver’s cash from the taxman. Child Trust Funds were launched in 2005 as a way to encourage parents to start saving for their children. More than 6 million CTF accounts were opened and no money could be withdrawn until the child reached age 18. For years, children with CTFs were left in limbo as savings providers stopped offering new products as JISAs took precedence.

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