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Should I reinvest my Child Trust Fund money?

When you finally get access to your Child Trust Fund at 18 you might be wondering whether to spend it now, or reinvest it for your future plans.

When we talk about “reinvesting” your money, we mean moving the money out of your Child Trust Fund (CTF) and into an adult account that invests it in stocks and shares.

With investing there's a risk that your money could go down, meaning you may get back less than you put in. 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.*

*Source: Barclays GILT study 2023.

Investing for your future

We make it easy to move money from your Child Trust Fund into our investment products - our Stocks and Shares ISA or Lifetime ISA - once you reach 18. Simply log into your online account, or register if you haven't done so already. You'll see your options for your CTF after your 18th birthday.

If one of your big life goals is to buy your own place one day, our Lifetime ISA could help you get the keys in your hand quicker.

For other big life plans, or even if you're not sure what path you'll take right now, our Stocks and Shares ISA could help you on your way.

Undecided about whether to spend or reinvest your CTF? Don't panic - you don’t have to reinvest it all. You can reinvest some of your money, and take the rest out for now. Best of both worlds!

What are my options to reinvest my CTF?

If you choose to reinvest your CTF, you'll be able to do this when you turn 18.

Register or log into your online account and move money from your Child Trust Fund into one (or both) of our adult investment products.

Take a look at our Lifetime ISA and Stocks and Shares ISA below.

For building your first home deposit

Buy your first home quicker with our Lifetime ISA

Lifetime ISAs are designed to help you save for 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 it's important to know, 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). This could leave you with less money than you put in.

Important information about our Lifetime ISA:

You must have money in your Lifetime ISA for at least 12 months before withdrawing it to buy your first home (which can’t cost more than £450,000)
You can keep paying into your Lifetime ISA until you’re 50 years old.
Our Lifetime ISA invests in stocks and shares so the value can fall as well as rise. That’s normal for this type of investment, but it does mean you could get back less than you put in

Log into your online account to open a lifetime ISA with your CTF money (option available after you turn 18)

For investing for the future

Put money aside with our Stocks and Shares ISA

If you want to put some money aside for university, launching a business, 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 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:

You can transfer as much of your Child Trust Fund into our Stocks and Shares ISA as you’d like.
You can invest up to £20,000 into ISAs each tax year (tax year runs April to April)
We invest in stocks and shares as we believe this provides the best opportunity for long term growth. The value of stocks and shares can fall as well as rise, which could mean you get back less than you put in.

Log into your online account to open a Stocks and Shares ISA with your CTF money (option available 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:

Being owned by our members for our members means we don’t have shareholders to pay – so we can reinvest our profits for to benefit our members and communities.
Putting our members first and improving the financial wellbeing of those who need it most is a key part of our Inspiring Better Futures vision.
As a OneFamily member, you'll also be supporting our charity partners like RedSTART. RedSTART is on a mission to teach primary school children from disadvantaged areas about money, with the aim of building strong evidence of the positive impact of early and ongoing financial education.
Transferring is easy. Simply log into your online account and let us know where you’d like us to move your money to. You’ll even be able to log in with the same password after your Child Trust Fund is closed.

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.