Should I reinvest my Child Trust Fund money?
What does "reinvesting" actually mean?
When you turn 18 and finally get access to your Child Trust Fund, do you plan on spending it or investing it?
When we talk about “reinvesting” your money, we mean moving the money out of your Child Trust Fund and into an account that invests it in stocks and shares to hopefully grow your money.
This can feel complicated, and there is a risk that your money could go down, but there’s also more potential for it to grow than there would be if you put it into a cash savings account. In fact, in every 10-year period since 2000, stocks and shares have out-grown interest rates.* We make it simple to move money from your Child Trust Fund into a Stocks and Shares ISA or Lifetime ISA once you reach 18.
But remember, you don’t have to reinvest all of it. If you want to take some money out when you turn 18 and keep the rest saved for a rainy day, that’s completely fine.
*Source: Barclays GILT study 2023.
What options are there to reinvest my money?
When you turn 18, you'll be able to log into your online account and move money from your Child Trust Fund into one of our adult, investment products. There are two options available, which suit different savings goals.
Buy your first home with our Lifetime ISA
Lifetime ISAs are designed to help you put money aside to buy your first home. The government helps you to reach your savings goal by topping up the money you invest in a Lifetime ISA by 25%.
As you can invest up to £4,000 each tax year in a Lifetime ISA, that's up to £1,000 a year of extra deposit money!
But, be warned, the government will charge you a penalty fee if you withdraw money for something other than buying your first home (unless you've turned 60, when you can do whatever you like with the money).
Important information about our Lifetime ISA:
Find out more about our Lifetime ISA
Log into your online account to open a Lifetime ISA with your CTF money (option available only after you turn 18)
Put money aside with our Stocks and Shares ISA
If you want to put some money aside for university, driving lessons or just to have some money when you need it, our Stocks and Shares ISA could work for you.
It's a straightforward way to start investing, all you need to do is decide which of our two funds you'd like to invest in and our fund managers do the hard work.
Unlike a lifetime ISA, you won't get a government top-up but you're not limited by only being able to spend the money on a house deposit. You can withdraw money at any time without paying a withdrawal penalty fee.
Important information about our Stocks and Shares ISA:
Read more about our Stocks and Shares ISA
Log into your online account to open a Stocks and Shares ISA with your CTF money (option available only after you turn 18)
Why reinvest with OneFamily?
What you do with your money once you turn 18 is, of course, 100% up to you. But here’s a few reasons why people choose to reinvest their Child Trust Fund money with us:
Ready to make your choice?
If you want to reinvest some, or all, of the money from your Child Trust Fund, register or log into your account to get started.
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.
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’ve not decided, don’t worry – you can leave your money where it is while you give it some thought.