-
Step 1
Review the options for your CTF maturity and decide what’s best for you. It could be helpful to talk this through with your parents or guardian before making a decision
-
Step 2
Complete the CTF Maturity Instruction form and post it back no later than three working days before your birthday
-
Step 3
When you turn 18 we will act on the instructions you have sent us either to take cash, keep invested or both
Your options when your CTF matures
Your Child Trust Fund (CTF) was set up for you to help you save for your future. Before you turn 18 you can choose what to do when it matures.
When you have to make a decision about money, it can be useful to think about what you want in the long-term, as different choices are designed to work towards different goals.
We have summed up some of the options open to you, to help you decide what's best for you.
-
Your goal
Saving towards your first home.
-
What’s the big appeal?
The government will pay a 25% bonus on what you invest in a LISA – which can mean up to £1,000 a year if you add the maximum contribution of £4,000. Even when you’ve bought a house, the bonus will still be paid on what you invest, right up until you are 50.
-
What are the downsides?
Because the bonus is essentially free money, the government are strict about what you can use it for. It can only be taken out to buy your first home or at age 60; otherwise there is a penalty on the withdrawal.
You also can’t transfer your CTF investments directly into a LISA. When you first come out of a CTF, we can arrange to sell and re-purchase the same investments in your LISA on your behalf free of charge.* It is important to note that as share prices fluctuate, you might get more, or less, when these are re-purchased.
-
Your goal
Building a tax-free investment you can access when the time is right.
-
What’s the big appeal?
Usually, there is a limit of £20,000 a year you can pay into an ISA, but the government is waiving this for any transfers from a CTF.
Transfer into the EQi flexible stocks and shares ISA to keep any gains tax-free and access the money when needed.
-
What are the downsides?
As with all investments, the value can fall as well as rise. You need to be prepared to leave your money invested for 5 years or more, to ride out market volatility.
-
Your goal
Having money available now, for example to go towards university costs.
-
What's the big appeal?
You can simply take the money that’s in your CTF. Let us know and we’ll transfer the money to you after your birthday and then close your account.
-
What are the downsides?
Once the money is gone, it’s gone. You could put some aside in a cash savings account, but do be aware that interest rates are generally very low.
-
Your goal
Having some money now and keeping some invested for my 20s or 30s.
-
What’s the big appeal?
You can choose to split your money, keeping some as cash and the rest invested in an ISA or LISA, keeping any gains tax-free and your money working towards your next big milestone.
-
What are the downsides?
You need to be prepared to leave your money invested in an ISA or LISA for 5 years or more. Plus, the less you have to invest, the longer it can take to build up a bigger lump sum.
Investment Risk Warnings
The value of investments can fall as well as rise and any income from them is not guaranteed and you may get back less than you invested. Past performance is not a guide to future performance.
EQi does not provide investment advice. If you are in any doubt as to the risk or suitability of an investment or product you should seek advice from an independent financial adviser.
The extent and value of any ISA tax advantages or benefits will vary according to the individual's circumstances. The levels and bases of taxation may also change.
What will I pay on EQi?
-
Lifetime ISA
0.2% per annum on holdings in your account capped at £10.00 per quarter.
This is the cheapest stocks and shares LISA in the market***
Receive a dealing account free of charge
-
ISA
Custody fee of £17.49 per quarter
Anything you pay in online dealing commission and funds platform fee will be deducted from your custody fee
Receive a dealing account free of charge
-
LISA and ISA
Custody fee of £17.49 per quarter
For your ISA, anything you pay in online dealing commission and funds platform fee will be deducted from your custody fee.
Receive your LISA and dealing account free of charge
-
-
Tell us your decision
Once you have made a decision, please complete the CTF Maturity Instruction form. Send the form back to us at least three working days before your birthday and we wil carry out your instructions when you turn 18.
If you change your mind, that’s fine, please send us a new CTF Maturity Instruction form, to replace the original instructions. Please make sure to send it back at least three working days prior to your birthday.
-
EQi explains
Why continue investing?
-
EQi explains
Child Trust Fund FAQs
-
EQi explains
Transfer your maturing CTF to us
*Barclays Equity Gilt Study 2018
**Stamp Duty Reserve Tax will apply when we re-purchase shares in a LISA.
***Correct at June 2020