Introduction to managing an account

The registered contact is the only person who can give instructions to the provider about the Child Trust Fund (CTF) account, although anyone can put money into it. The provider will send out an annual statement to the child, care of the registered contact. The statement will give full details of the account, including the value of the investments at the start and end of the year, the total amount contributed to the account and any charges made by the provider.

Summary for the registered contact

• Keep your child's Unique Reference Number somewhere safe in case you need to contact HM Revenue & Customs. This is shown on the voucher 
• Be aware of your child's account type and provider, keep an eye on how the account is doing and think about changes if you are not satisfied
• Tell your child about the CTF account once they're old enough – it's a good way to help them learn about money and savings
• Keep the annual statements and other CTF information together in a safe place
• Tell your account provider about any changes that may affect the account, such as a change of address.

You should also let the Child Benefit Office know about any changes and they will automatically update the CTF records. If you are in Great Britain call 0845 302 1444. If you are in Northern Ireland, call 0845 603 2000.

If you do ever lose the details of your child's provider, call the CTF Helpline (see contact us button at the top of the page). They will ask you for your child's Unique Reference Number.

When children turn 16

Once your child turns 16 they are the only person entitled to be the registered contact. They will have to contact the provider to apply to manage the account. If they don't do this there won't be a registered contact for that account.

Once the 16-year-old has contacted the provider, annual statements will be sent direct to them and they will be able to move the account to a different provider or change the type of account. Two years later, aged 18, they will have access to the money to use as they think best.

Changing accounts and providers

You may want to make changes to your child's Child Trust Fund (CTF) account at some stage and the registered contact (usually a parent or the child's guardian) is the only person who can do this.

Changing the registered contact for a CTF account

You may want to change the person who is the registered contact for your child's account at some stage. This can be done by both the existing registered contact and the person who wants to take their place signing a form agreeing to the change. Your provider will give you a form.

Where the person who was the registered contact has died, or cannot be contacted, the person who wishes to be the new registered contact should contact the provider. If the provider is satisfied that the account no longer has a registered contact they will ask the new registered contact to complete an application.

Transfer Costs

Providers cannot charge for transferring an account. But if your child holds a stakeholder account or some other account that invests in shares, the provider may deduct costs (such as stamp duty and dealing charges) in selling any stocks and shares that form part or all of the account. You should check this with your provider before going ahead and making the change. It would also be a good idea to check with the new provider how long the transfer should take.

Accessing the money

Your child will not normally be able to take the money out of their Child Trust Fund (CTF) account before they are 18 and it cannot be taken out by anybody else. The only exception to this is if the child is terminally ill.

On your child's 18th birthday the account will stop being a CTF account and they can choose to carry on saving or use the money as they think best.

They might decide to put part or all into another savings or investment account. The first CTF accounts will start to mature in 2020. The Government has said it will allow funds to be rolled over into an Individual Savings Account on maturity and will consult in due course on the best way to introduce this reform.

Or they could put money towards driving lessons, computer equipment and training courses. All children will have been receiving financial education to help them manage their finances with future needs in mind.

How much will my child get?

This depends on:

• when the account was opened
• the type of account
• the rate of interest or growth on the account
• level of contributions made into the account
• the level of the provider charges deducted from the account.