Child Trust Funds

A Child Trust Fund (CTF) was an initiative by the government that provided a £250 savings voucher for every child born after the 1st September 2002.

Child Trust Funds were abolished by the coalition government in 2010 and it is no longer possible to open a Child Trust Fund for a child born after 2 January 2011. The accounts belong to the child and the funds cannot be withdrawn until they turn 18.

Existing Child Trust Fund accounts are unaffected by the ending of the scheme and payments into these accounts can still be made. The government confirmed in the 2011 Budget that Junior ISAs would be introduced to replace the Child Trust Fund.

Compare Junior ISAs using the table below:

Regular Savings
From £25 pm
Investment Options

FREE Children’s ISA Guide. Choose from over 2,500 unit trusts and OEICs from leading fund managers. Invest from £25 per month or lump sums of £100.

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Good to know: With an HL Junior Stocks and Shares ISA, you can choose investments for your child including UK and overseas shares, Investment trusts, bonds and exchange-traded funds (ETFs). HL have over 1 million clients who trust them for their investments. Capital at risk.

Important information: The value of investments can go down as well as up so you may get back less than you invested. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser. Tax treatment depends on individual circumstances and all tax rules may change in the future.
Invest from
Investment Options

Simple, transparent – Invest in one of a range of expertly designed portfolios depending on your investment style. No exit fees and you’re free to make adjustments. You can see where your Junior ISA is invested and how it’s performing


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Good to know: All four Nutmeg investment styles are built by experts and use exchange traded funds to diversify across stocks, bonds, industries, even countries. Choose the one that works for you.
Regular Savings
From £50 pm
Investment Options

Over 4,000 funds. You can get investment ideas from Fidelity’s experts.

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Good to know: Investment choice from over 140 fund providers, giving you access to 3,000 investment options including investment trusts and ETFs. One low-cost service fee of 0.35%. Great service – from investment guidance on website through to UK-based phones team. PathFinder (investment ideas for your child’s junior ISA), Select 50, Investment Finder – investing tools for beginners to advanced investors. 24/7 access via online Account Management system. Capital at risk.
Important information: The value of investments can go down as well as up so you may get back less than you invested. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser. Tax treatment depends on individual circumstances and all tax rules may change in the future.
Regular Savings
From £10 pm
Investment Options

A selection of eight funds to choose from low to high risk, so you can tailor your child’s investment.

Online Valuations
Good to know: Scottish Friendly funds include a UK Government Bond Fund, A UK Tracker Fund and a UK Actively Managed Fund. When you take out a My Select (Junior ISA) Scottish Friendly will pay £50 into the Junior ISA for your child. Winner of Best Junior ISA Provider at the Investment Life and Pensions Moneyfacts Awards 2019.
Regular Savings
From £10 pm
Investment Options

Invests in the Friendly Society’s With Profit Fund

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Good to know:  Shepherds Friendly Society founded in 1826 is owned by members and does not have shareholders. The Shepherds Junior ISA is invested in the Society’s With Profit fund in a manner that means your child’s money is less affected by short-term stock market fluctuations, so will not lose or gain value on a day-to-day basis. Instead, they will aim to add an annual bonus at the end of each year, the value of which will depend on the performance of the fund during that year.  Apply for a Junior ISA and Shepherds will send you a Love2Shop voucher code worth up to £50 when you’ve made your first payment.

Junior ISAs

Opening a Junior ISA

Junior ISAs can be opened by anyone who has parental responsibility for an eligible child. One ISA can be opened per child. Management of the ISA passes to the child when they turn 16. However, funds remain inaccessible until the child turns 18, after which they can either withdraw the funds, or have their account roll over into an adult ISA.

Junior ISA rules

On the whole, Junior ISAs are quite similar to regular adult ISAs in terms of rules and regulations. Some of these rules include:

  • The 2020/21 annual contribution limit for Junior ISAs is £9,000 per tax year. This can either be put solely into a Junior cash ISA or divided between a Junior stocks and shares ISA and a Junior cash ISA in whatever proportion you wish.
  • Funds in the account will be owned by the child it is opened for and will be locked in until the child reaches 18.
  • Junior ISAs operate on a similar principle to regular cash ISAs; only one Junior ISA can be held by each child at a time, and you can transfer a Junior ISA from one provider to another. This is one of the key differences between an adult ISA and a Junior ISA. You can also switch a Junior ISA from a cash ISA to a stocks and shares ISA, and vice versa, something which is not permitted under the current rules for adult ISAs.
  • Unlike Child Trust Funds, Junior ISAs don’t include any contribution from the Government.

Advantages of Junior ISAs

  • The money saved in a Junior ISA stays tax-free once the child reaches the age of 18.
  • The money is locked away until the child turns 18 which could help prevent it being wasted on non-essentials.
  • Contributions are very flexible – you can save as much or as little as you want (up to the current annual allowance of £9,000), as regularly or infrequently as you want.
  • Anyone can put money into a Junior ISA on a child’s behalf – so friends and relatives can contribute if they wish to do so.
  • Junior ISAs will now accept transfers from Child Trust Funds but you’ll need to check with the Junior ISA provider first

Limitations of Junior ISAs

  • Once your child reaches 18, the money is theirs to spend or save as they wish – if you are concerned that they will waste it, it may be better to set up a savings account in your own name.
  • For 2020/21 the Junior ISA limit is £9,000. If you want to save more for your child during the tax year, you may need to open further savings accounts to do so. Remember that only one Junior ISA is allowed per child, per tax year.
  • A Junior ISA may not always provide any additional advantages over a regular savings account as most children have an annual income that falls below the annual income tax threshold. They can therefore earn tax-free interest on money set aside for them in any savings plan.
Important Risk Information: This website contains information only and does not constitute advice or a personal recommendation in any way whatsoever. The value of investments and income from them can fall as well as rise and you may not get back the full amount invested. The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future. Different types of investment carry different levels of risk and may not be suitable for all investors. Prior to making any decision to invest, you should ensure that you are familiar with the risks associated with a particular investment and should read the product literature. If you are in any doubt as to the suitability of a particular investment, both in respect of its objectives and its risk profile, you should seek independent financial advice. * Details of how the Financial Services Compensation Scheme applies to investment firms can be found at