Martin Lewis Child Trust Fund

Not to be confused with the more widely-known junior individual savings accounts (JISAs), Child Trust Funds (CTFs) were a tax-free savings account that was set up for every child born between 1 September 2002 and 2 January 2011.

The government made an initial deposit of £250 into each account, and parents or guardians could then contribute up to £9,000 per year tax-free. The money in the account could then be invested in a range of different assets, such as stocks, shares, and bonds.

CTFs were a popular way to save for a child's future, as the money grew tax-free and could be used for anything the child wanted when they turned 18.

However, the scheme was closed to new applicants in 2011, and no further contributions can be made to existing accounts. As a result, many people have forgotten about their CTFs or are unaware that they even have one.

If you think you may have a CTF, it's worth checking to see if you can find it. You can do this by contacting the provider of the account or by using the government's online Child Trust Fund finder tool.

If you do find your CTF, you can either leave it invested until the child turns 18, or you can withdraw the money and use it for something else. However, it's important to be aware that if you withdraw the money before the child turns 18, you may have to pay tax on the earnings.

CTFs were a great way to save for a child's future, and if you have one, it's worth making sure you know where it is and what's in it. By doing so, you can help your child get a head start on their financial future.

Additional tips:

• If you can't find your CTF, you can contact the government's Child Trust Fund helpline on 0800 542 8319.
• If you're thinking about withdrawing money from your CTF, it's important to speak to a financial adviser first to make sure you understand the tax implications.
• CTFs are a great way to teach children about money and saving. You can use your CTF to set up a regular savings plan for your child, or you can let them invest the money themselves.