Child Trust Fund

What to expect as you approach your 18th birthday

When you were born, the Government gave you a voucher to start you off with a savings account, which your parents or guardians have looked after. Now, nearly 18 years later, it’s about to become yours to decide where you want to go next on your investment journey. Below you’ll find details of what will happen to your account on your 18th birthday and the options that are available to you. 

What happens on my 18th birthday?

From the day you turn 18, your 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 you tell us what you want to do with your investment.

We can’t accept new contributions into a matured account (even from you) so any direct debits will stop on, or before, your 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 you transfer into a new account though.

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

We’ve listed the options available to you below, but should you have any questions about the process or your 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 me when I turn 18?

Continue investing

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

Withdraw your investments

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

Do nothing

Your CTF will continue as a “matured CTF” –  your account will stay in the same funds as it’s currently held in but you can’t make any new investments.

Continue investing

Continue to invest for life’s big moments, such as further education, house deposit or a rainy day with BMO by moving into one of our investment plans for adults.  Transferring into the BMO Individual Savings Account (ISA) keeps the tax benefits of your Child Trust Fund and you are still able to invest your full annual ISA subscription allowance on top of the amount transferred.  However, if our ISA isn’t the right choice for you, then we also offer the BMO General Investment Account (GIA). Read more on the BMO ISA and BMO GIA below.

Alternatively, you can also transfer your account to a investment plan with another provider.

BMO ISA

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 this tax year.

  • Tax-efficient investing
  • Invest in the long-term potential of the stock market
  • Access all 10 of our investment trusts
  • Tailor it to suit your needs
  • Flexible investment options

BMO GIA

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 limit
  • Access all 10 of our investment trusts
  • Growth and income strategies
  • Flexible investment options
  • Tailor it to suit your needs

Withdraw your investments

Another option you have when you turn 18 is to withdraw the money that’s been invested. There’s no charge to withdraw but you wouldn’t be able to put the money back into a CTF.  If you later 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.

Do nothing

You may not know what you want to do with your account when you turn 18 or you may need more time to decide. Rest assured you don’t have to tell us your decision straight away.  Your CTF will continue as a “matured CTF” –  your account will stay in the same funds as it’s currently held in. You just can’t make any new investments or change the ones you 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 your holdings.

Between now and your 18th birthday, you should have a think about what you want to do with the money invested when you turn 18. Your parents or guardians could play an important role in your decision-making process so it would be beneficial to discuss your options with them.

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

Firstly, let us know how you’d prefer us to communicate with you.  Up until now, we’ve mainly dealt with your parent or guardian but once you are 18, we’ll only communicate directly with you (unless you tell us otherwise). Complete and return the form below, which is designed for you to fill in so that we have your preferred contact details – it also allows you to provide details of anyone you’d like to help you with the account once you turn 18.

It’s important we have your correct contact details in order to update you with any actions you may need to take regardless of which option you decide to choose.  We need to know where you live, especially if this is different to your parent’s address, as we’ll need you to provide proof of your address (there’s more information about that below).

Another thing that you can do now is send us documents to prove your identity and where you live. This is an important step to make sure that we know who you are and that only you have access to the funds that have built up for you. You can’t take money out of, or add money into, your matured account until you’ve done this.   

You may also want to send us proof of your bank details. This allows us to make future withdrawals directly into your bank account and/or set up future regular investments from that account.

You can send the documents into us when you are ready to make your decision about what to do with your account. However, it’s a good idea to send these documents now to help avoid delays in acting on your instruction.  

To verify your identity, we can accept

  • Valid passport
  • Valid photocard driving licence (full or provisional)
  • Recent evidence of entitlement to a state or local authority-funded educational or other grant
  • Most recent HM Revenue and Customs Tax Coding Notification, Assessment or Statement (dated within the last year). If you are working and paying tax, the HMRC will send you a copy of your tax coding notification on request.
  • A government-issued document that incorporates your full name and photograph and either your residential address or your date of birth.

We then need something that has been sent in the post to your residential address.   

  • A bank or debit card statement which has been issued within the last three months (but not ones printed off the internet). If you don’t normally get these sent in the post, if you contact your bank, they can usually send you a one-off statement.
  • Utility bill issued within the past three months (but not ones printed off the internet)
  • Valid photocard driving licence (full or provisional)*
  • Recent evidence of entitlement to a state or local authority-funded educational or other grant*
  • Most recent HM Revenue and Customs Tax Coding Notification, Assessment or Statement (dated within the last year)*
  • A government-issued document that incorporates your full name and photograph and either your residential address or your date of birth*

* We need two documents so you can’t use the same document to confirm both your identity and your address.

To verify your bank details, we need something from your bank which has your sort code, account number and account name printed on it e.g.

  • A bank statement which has been issued within the last three months (but not ones printed off the internet). If you don’t normally get these sent in the post, if you contact your bank, they can usually send you a one-off statement.  We can accept the same statement as both proof of your bank details and proof of your address.
  • A voided cheque (in other words, one that you have scored through and written VOID across it so that nobody could use it)
  • A pre-printed pay-in slip

We don’t recommend that you send us originals of personal documents in the post.  However, you can send us certified copies instead. 

Certified means that the person who copies your original document needs to confirm that they have seen the original document(s).    

To certify a document, the certifier takes a copy of the document.

On each page they need to include

  • The statement (it can be stamped or handwritten) “I hereby certify this is a true copy of the original”
  • The date (the certification must be within the last 6 months)
  • Their signature
  • If the copy of your photographic identification (e.g. passport) is not clear, they should also state that it is a good likeness of you.

They also need to provide their full name and designation (e.g. job title), badge/reference/registration number if applicable and clearly note their full address details and telephone number. This is because we need to be able to separately confirm their identity e.g. through a professional register.  

We can only accept documents certified by people with certain professions.   They cannot be someone related to you.  They could be a family friend and they need to be currently practicing (e.g. not retired)

The certifiers we can accept are:

  • A judge or a magistrate
  • A senior civil servant
  • A serving police or customs officer
  • A commissioner for oaths
  • An officer of an embassy, consulate or high commission of the country or territory of issue of documentary evidence of identity
  • A lawyer, notary public or legal executive who is a member of a recognised professional body
  • An actuary who is a member of a recognised professional body
  • An accountant who is a member of a recognised professional body
  • A member of the Institute of Chartered Secretaries and Administrators
  • A director or officer (working within the Legal or Compliance office) of a regulated financial firm
  • The UK Post Office certification service, with details of the individual certifier

The certifier should sign and date each document, and state on each document

  • Their name, address and telephone number
  • The capacity in which they are certifying the documents
  • Their firm if applicable
  • Their badge/reference/registration number if possible

Unlike when you apply for a passport, the person certifying your documents doesn’t need to know you personally.

If you don’t know someone that you can ask either personally or professionally, the Post Office offer a certification service for a small fee.

We don’t recommend that you send us originals of documents such as a passport or drivers’ licence in the post.  However, you may feel more comfortable sending us original documents such as tax notices or bank statements.

The account will remain open and any funds already received will remain invested. You can transfer to another account within BMO.  However, you cannot add further payments to or withdraw funds out of the account (including transferring to another provider).  Online access to your account may also be restricted.

If we don’t have proof of your bank details, then if you make a withdrawal, we send the proceeds to you by cheque to your registered address.

Please send them to us in the post to:

BMO Asset Management Ltd
PO Box 11114
Chelmsford
Essex
CM99 2DG

You can send them in at the same time as the “Update my Contact Details” form above but if you are sending them separately, then please make sure that you provide your account number.

Why choose BMO?

Benefit from our expertise

Our experienced fund managers make informed investment decisions for you. We invest in a range of equities, bonds, property and private equity and have been helping customers since 1817 and manage over 145,000 UK accounts.

Investment trust options

Whether you’re looking for growth or income, create an investment portfolio that meets your needs, with our 10 Investment Trusts.

One of the World’s Most Ethical Companies

We’re recognised by the Ethisphere Institute, a global leader in defining and advancing the standards of ethical business practices, as one of the World’s Most Ethical Companies for the third year in a row in 2019.

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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.

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