Child Trust Fund

What to expect as your child approaches their 18th birthday
When your child was born, you made the wise decision to set up a Child Trust Fund that’s close to reaching maturing now they are approaching their 18th birthday. Their account will soon mature and will require them to make an instruction on the account, which could involve them continuing their investment journey or withdrawing the money invested. Below you’ll find details of what will happen to the account on their 18th birthday and the options that are available to them.
What happens on their 18th birthday?

On the child in your life’s 18th birthday, their Child Trust Fund will turn into a matured CTF account, meaning it will have the same benefits and charges as before, but it will be closed to any new investment. The matured CTF will remain the same as before until they tell us what they want to do with their investment.

We can’t accept new contributions into a matured account (even from you) so any direct debits will stop on, or before, their birthday but the annual charges on the account will remain the same as before (£25+VAT on a shares account or 0.7% of investments for a stakeholder account).  We can help start direct debits up again if they transfer into a new account though.

Your child will receive a letter from us around the date of their 18th birthday asking them to make a decision about their investment. They’ll be directed back to this page, where they’ll find a form which they will need to fill out and send back to us whatever decision they take with the account. Please note this can only be done once they’ve turned 18, but they don’t have to make a decision right away.

We’ve listed the options available to them below, but should you or your child have any questions about the process or the options, you can contact us.

Let’s talk about risk

The value of your investments and any income from them can go down as well as up and you may not get back the original amount invested. Tax allowances and the benefits of tax-efficient accounts are subject to change and tax treatment depends upon your individual circumstances.

What options are available to my child when they turn 18?

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Continue investing

They can transfer into our BMO ISA or BMO GIA. Key information on both of these products can be found in the section below.

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Withdraw the investments

They are able to withdraw the money that’s been invested, without paying a fee.

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A combination of both

You can also transfer some of your shares into one of our adult plans and withdraw the rest.

Continue investing and keep the same fees until they turn 21
Help them continue to invest for their future with BMO by moving into one of our three investment plans for adults with no transfer charges. We’ve also reduced the annual charge on our adult products until your child turn 21, meaning they’ll benefit by keeping the same rate as the CTF (£25 + VAT) rate for up to three years. Read more on our three investment plans below.

Alternatively, they can also transfer the account to a savings plan with another provider.

BMO Individual Savings Account (ISA)

Piggy bank
A popular, tax-efficient way to invest. There’s no tax to pay on any income you earn, and you can create an investment portfolio that’s right for you.
  • Invest up to £20,000 in the 2021/22 tax year.
  • No income tax or capital gains tax on any profits made.
  • Annual charge – £25 + VAT*

BMO General Investment Account (GIA)

Eye with pound

A great way for long-term investors to benefit from the potential of the stock market. Offers flexible investment options with no annual limit.

  • No investment limits
  • Great option if you’ve already maxed out an ISA.
  • Annual charge – £25 + VAT*

BMO Lifetime ISA


For those aged 18-39, a Lifetime ISA could help towards purchasing your first home up to £450,000 or retirement in later life. Benefit from tax-efficient savings as well as a government bonus.

  • Invest up to £4,000 as part of your ISA allowance.
  • Receive a £35% government bonus up to £1,000 per year.
  • Annual charge – £25 + VAT*
Withdraw their investments

Another option they have from their 18th birthday is to withdraw the money that’s been invested. There’s no charge to withdraw but they wouldn’t be able to put the money back into a CTF. If they decide at a later date to put the money into an ISA, it would be treated as a new subscription.

We recognise that to most 18-year-olds a house deposit, wedding costs or – even more outlandishly – a retirement pot are goals that seem a lifetime away. They practically are! Take a step back though and we firmly believe that it’s better to prioritise longer-term goals over a short term retail fix.

A combination of both

They can also transfer some of their shares into one of our adult savings plans and withdraw the rest. Help them choose whatever works best for them as long as they make an election for 100% of the amount invested in their CTF.

Do nothing

Your child may not know what they want to do with their account when you turn 18 or perhaps need more time to decide. Rest assured they don’t have to tell us their decision straight away.  Their CTF will continue as a “matured CTF” –  the account will stay in the same funds as it’s currently held in. They just can’t make any new investments or change the ones they already have.  The fees will continue at the same level as a Child Trust Fund and will be taken from the funds in the account and will depreciate the overall value of their holdings.

What happens next?

Between now and their 18th birthday, they should have a think about what they want to do with the money invested. As a parent or guardian, you could play an important role in their decision making process so it would be beneficial to discuss their options with them.

Whilst we can’t accept an instruction about the future of their investment until they’ve reached 18, there are a couple of things that they can do now.

Firstly, download the CTF maturity form, which is designed for your child to fill in so that we can keep in touch with them regarding the account and also to provide details of anyone they’d like to help with the account once they’ve turn 18, should you wish. It’s important we have their correct contact details in order to update them with any actions they may need to take regardless of which option they decide to choose.

They’ll also need to prove their identity and where they live in order to make an instruction on your account. This is an important step to make sure that we know who they are and that only they have access to the funds that have been built up. It’s important to provide this as soon as possible as without proper verification we can’t accept any instruction, whether that be a further investment or withdrawing money from the account. We’ve provided some more information on this below.

Why do you need me to verify my identity?

In accordance with UK anti-money laundering regulations, financial firms are required to verify the identity of anyone connected with an account. We need to see certified copies of two documents which confirm your identity, one from each of the lists found further down. These also state who can certify your documents.

What does certified mean?
What documents can I send in as verification?
Who can certify my documents?
What happens if I don't provide verification of my identity?

Why choose BMO?

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Responsible Investment

For over 35 years, we have led the way in responsible investment. We’ve engaged with over 5,500 companies to ensure that generating returns for our investors does not come at the expense of the real world in which we all live.

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Information in this section of the Website is directed solely at persons who are located in the UK and can be categorised as retail clients. Nothing on this website is, or is intended to be, an offer, advice, or an invitation, to buy or sell any investments. Please read our full terms and conditions and the relevant Key Information Documents (“KID”) before proceeding further with any investment product referred to on this website. This website is not suitable for everyone, and if you are at all unsure whether an investment product referenced on this website will meet your individual needs, please seek advice before proceeding further with such product.
Confused? Our handy glossary can help explain investing terms.

*Product charges will be £25 + VAT until you turn 21, at which point you will be subject to the full annual charge for each product. ISA – £60 + VAT, GIA – £40 + VAT