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Should I reinvest my Child Trust Fund money?

What does "reinvesting" actually mean?

At the moment, the money in your Child Trust Fund is either building interest like a current account does or it’s in a fund that's invested in the stock market.

When we talk about “reinvesting” it, 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. 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.

What options are there to reinvest my money?

When you turn 18, you can easily move money from your Child Trust Fund into one of our stocks and shares products, ready for when you need it.

If you decide to reinvest your money with OneFamily, there’s two options which suit different needs.

Perfect for your first home

Save for the big things with our Lifetime ISA

Lifetime ISAs are a type of account designed specifically to help you buy your first home or to save for life after 60. The government will top-up the money you put into a Lifetime ISA by 25% of the amount you save.

You can put up to £4,000 a year into your Lifetime ISA, and if you do this you will receive a £1,000 government bonus. So, your £4,000 becomes £5,000.

The catch is that you have to use this money to buy your first home or leave it in the account until you turn 60 – otherwise the government will charge you a penalty fee for withdrawing money.

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. If you take your money out before you turn 60 for anything other than buying your first home, you’ll be charged a 25% penalty fee, which will leave you with less than you’ve put in
Remember that the value of stocks and shares 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

Find out more about our Lifetime ISA

Money for when you need it

Save for anything you like with our Stocks and Shares ISA

If you want to continue saving for anything other than your first home or you’re not yet sure what you’ll use the money for, our Stocks and Shares ISA could be for you.

You can use the money in your Stocks and Shares ISA however you like and withdraw money at any time with no penalties for taking it out.

This makes it a good option if you think you might need to dip into your savings in the next few years but still want to make your money work hard for you.

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 to (up to £20,000). You could even split it by putting some money into a Lifetime ISA
You can pay 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, but you should remember that the value of stocks and shares can go down as well as up, which could mean you get back less than you put in

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:

You have the option to reinvest your money in a climate-friendly fund. This means you’re supporting companies that are actively working towards reducing carbon emissions and you’re not funding activities like fracking.
We’re a mutual. We don’t have shareholders to pay dividends to, so we reinvest our profits to benefit our members and the community. As a OneFamily member, you’re also supporting our charity partners.
We invest in stocks and shares. When you open our Lifetime ISA or Stocks and Shares ISA, you can choose one of two funds
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.