Child Trust Fund (stakeholder account)

Originally set up by the government, a Child Trust Fund (CTF) is a long-term tax-free savings account for children.

  • Transfer an existing CTF to us
  • Designed to encourage saving
  • Plan runs up to age 18
  • Find out if your child has a CTF and where it is held

Our Child Trust Fund is a stakeholder account, the money is invested in a fund linked to stock market performance. As with all stock market investments the value may fall as well as rise and you may get back less than has been paid in. Tax treatment depends on individual circumstances and may be subject to change in the future.

Product information

  • About this policy

    Our CTF is a 'stakeholder account', which means there are a certain set of rules that the provider must comply with.

    To transfer an account you must have parental responsibility for the child, or be the child aged 16 or over, you must also be the registered contact for the account.  See our FAQs below for further information.

  • What are they?

    As mentioned above, CTFs were originally set up by the government to encourage long-term saving for children.

    If your child holds a CTF, anyone can pay into the plan up to £9,000 each year (birthday to birthday) tax-free.

  • Who are they for?

    Any child born in the UK between 1st September 2002 and 2nd January 2011 should have been issued with a voucher from the government. Vouchers were worth £50 or £250, depending on when the child became entitled.

    The voucher enabled the parent/guardian of the child to choose a provider for the CTF. If the voucher was not used before the expiry date then the government allocated these accounts to various product providers, to ensure the children didn’t miss out on their policy.

    If you think your child may have a CTF, but you're unsure who the provider is, head over to the HMRC website to find out more.

  • Why open one?

    Unfortunately, you cannot apply for a new CTF (only transfer an existing one) because the scheme is now closed. However, there are a number of different ways to save for a child, head over to our Children's savings page for more information.

Please note

Currently, you can only transfer a CTF to us via post

How to transfer a Child Trust Fund

Step one

Download a transfer pack or contact the office to receive one in the post

Step two

Ensure you have read and understood our CTF booklet and Key Information Document

Step three

Complete and sign the relevant forms

Step four

Send us back the completed transfer pack (address at the bottom of the page)

Other ways to apply

Apply over the phone

Need more information or prefer to apply over the phone? We're happy to go through any questions you have, as well as taking you through the application process over the phone. Either call us on 01226 741000, or click the link below and we can call you back at a time to suit you.

Download an application pack

Currently, you can only transfer a CTF to us via post. Download which pack you need, complete and send it back to us in the post - simple.

How it works

  • Transfer a Child Trust Fund

    Want to transfer an existing CTF to a CTF or JISA with us? No problem, simply download and fill in the CTF and the transfer pack and post it back to us. You can transfer a CTF to our JISA online here.

  • How do I find out the value of my investment?

    When the account is opened or additional money is added to it, you will be allocated a number of units based upon the unit price on that day. For example if you invested £250 and the unit price was £1 you would be allocated 250 units.

    The unit price will vary depending upon the value of assets within the fund and the number of units issued. However, the number of units allocated to your account will not vary unless additional money is invested. You can therefore calculate the value of your investment by multiplying the unit price at the time (see our archive or contact us for current values) by the number of units held. More info can be found in our FAQs.

  • Can I add money to the CTF?

    Yes, further payments can be made in addition to contributions from the government up to the current maximum allowance of £9,000 per subscription year which runs from one birthday to the next. These can be ad-hoc payments or regular monthly contributions. More info in our FAQs below.

  • Can I make withdrawals?

    No, withdrawals are not allowed at any time up to age 18.

  • What about charges?

    We make a charge of 1.5% of the value of the account each year for management and administration. The quoted unit price includes charges and there are no further deductions.

Current Child Trust Fund unit values

Date Unit prices
18/03/2024 317.3581
11/03/2024 313.1212
04/03/2024 312.3893

A full archive of unit prices can be found here.

Child Trust Fund bank account details

If you want to make a payment into a CTF account (that is held with us), our Child Trust Fund bank account details can be found on the download below.

CTF performance

Want to know how our CTF has performed over the past number of years? Click the link below.

Frequently asked questions

Our most commonly asked questions surrounding the Child Trust Fund can be found below.

To transfer an account you must have parental responsibility for the child and be over 16 years of age, you must also be the registered contact (person "in charge") of the account. The ‘registered contact’ is the person who can make decisions about the account and to whom annual statements will be sent. When the child reaches 16 they may become the registered contact by completing a declaration form at that time. If they fail to do so, we will continue to manage the account in accordance with the most recent instructions from the previous registered contact.

The government has set certain standards which a stakeholder account must comply with and these are the only type of accounts that can be used when allocated by HMRC.

The requirements are:

  • The funds in the account should be invested predominantly in the stock market and in the shares of a spread of companies
  • Charges must not be more than 1.5% of the value of the fund in the account each year
  • Additional payments of £10 or more must be accepted either by cheque, cash, direct debit or standing order

Non-stakeholder accounts can invest in different types of assets and are not restricted to maximum charges of 1.5%.

The Sheffield Mutual CTF is a stakeholder account, but if you are concerned about the possibility of stock market losses you can request a transfer to our lower-risk Investment Junior ISA.

Please note that if you transfer a stakeholder CTF to another CTF or a junior ISA, you may lose some or all of the stakeholder features.

When the account is opened or additional money added to it, you will be allocated a number of units based upon the unit price on that day. For example if you invested £250 and the unit price was £1.00 you would be allocated 250 units.

The unit price will vary depending upon the value of assets within the fund and the number of units issued. However, the number of units allocated to your account will not vary unless additional money is invested. You can therefore calculate the value of your investment by multiplying the unit price at the time (see here or contact us for current values) by the number of units held. The unit price will be calculated weekly and is available on our website or by contacting our office. You will also receive an annual statement telling you the number of units and current value. In order to receive your annual statement, you must complete and return your registered contact form. If no form is received then you will only receive a statement after your child's 10th, 15th and 17th birthdays. A final statement will also be sent to the child within 12 months of maturity and every 12 months thereafter if the matured CTF remains open post maturity.

The first of the CTF accounts will begin to mature in September 2020. Before the child's 18th birthday, we will send a letter detailing the options that will be available to them.

There are a number of options as to what happens next:

  • Continue to enjoy tax-free returns, with access to your money when it is needed, by investing all or part of the funds into our adult Investment ISA
  • Withdraw the whole amount
  • Transfer your money to another provider
  • If you don’t want to decide straight away, you can keep the funds in the matured account until you’re ready to make a decision. However, if you choose this option, no further payments can be made into the account

Please be aware that investments may go up or down and capital at risk.

The money will be invested in the Legal & General FTSE All Share tracker fund. The objective of this fund is to provide growth by tracking the performance of the FTSE All-Share Index. The fund will invest almost entirely in company shares and the investments will closely match those that make up the Index.
The Index consists of a broad spread of UK company shares and may use derivatives (contracts which have a value linked to the price of another asset) for the following purposes:
  • To help with efficient day to day management
  • To reduce some of the risks of the market

Absolutely, further payments can be made in addition to the contributions that were made from the government up to the current maximum allowance of £9,000 per subscription year which runs from one birthday to the next. However, once money has been added under normal circumstances (see terminal illness or early death) the money cannot be accessed until the child reaches the age of 18. Additional payments can be taken over the phone by debit card, via a bank transfer, or you can send a cheque. Regular payments can also be set up by standing order or direct debit.

To make a payment to a CTF account please use the following bank account details.

Account Name: Sheffield Mutual Friendly Society

Sort Code: 53-61-04

Account Number: 60553685

Reference: Please put your child's unique reference number (URN) as the reference

In the case of diagnosis of a terminal illness, HMRC may allow early access but they will have to be contacted via their website to make a claim. They may agree to some or all of the invested fund being withdrawn but the account will remain open to accept any further payments. In the unfortunate event of death the value of the account on the date of death will be paid to the child’s estate.

Yes. Those with a CTF may transfer to a junior ISA should they wish to. This must be the whole amount as partial transfers are not allowed. Any such transfer will not count towards the child's current junior ISA allowance.

A CTF may be transferred even if, at the time of transfer, the child would not meet the normal UK residing conditions for a junior ISA.

No, under current legislation which may change in the future, the proceeds are free from income and capital gains tax.

Yes, you will have 14 days in which to change your mind after you receive the initial account opening pack. After this the account will be opened and the money invested.

You can transfer either to or from a CTF provider by obtaining and completing a transfer form. This must be the whole amount as partial transfers are not allowed by HMRC.

You will not become a voting member of the Society and therefore will not have access to the various discretionary benefits that voting members have.

In order to receive additional payments we may require proof of identity and address in order to comply with anti-money laundering regulations. We reserve the right to do this electronically through an external agency.

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