Junior ISA vs Child Trust Fund

Ever uncovered a dusty piggy bank from childhood? Well, it seems like many parents are realising their kids could be missing out on more than just some loose change.

In fact, the Public Accounts Committee estimated in 2023 that there was more than £1.7bn sitting in Child Trust Fund (CTF) accounts waiting to be accessed.¹

If you’ve recently realised that your child has a CTF and are looking to track it down, you’re not alone. And the whole thing can feel like a big headache, as you’ll likely be weighing up your options and maybe considering whether to transfer a Child Trust Fund to a Junior ISA (JISA).

CTFs were automatically set up for children born between 1st September 2002 and 2nd January 2011, often with an initial voucher from the government. But they’ve since been phased out, with JISAs taking their place instead.

Now, with your child approaching 14 or older, you’re probably wondering: Should you stick with the original CTF, or is it time to switch to a JISA?

This guide will walk you through the key differences – from how each account works to how they’re managed – so you can make a confident and informed decision about the future of your child’s savings.

• What is a Junior ISA?
• What is a Child Trust Fund?
• What's the difference between a Child Trust Fund and Junior ISA?
• Junior ISA and Child Trust Fund similarities
• Finding lost Child Trust Funds
• Can you have a Child Trust Fund AND a Junior ISA?
• Transfer a Child Trust Fund to Junior ISA

What is a Junior ISA?

So, first things first: let’s cover what exactly a JISA and CTF are, beginning with a Junior ISA.

Simply put, a JISA is a long-term, tax-efficient savings or investment account that is opened for children under 18. Launched in 2011 to replace the Child Trust Fund, it allows families to save up to £9,000 each tax year in either cash, investments (like stocks and shares), or both (though children are only allowed to have a maximum of one of each type).

The money is locked away until the child turns 18 and becomes the legal owner. At that point, they can access the funds, choosing to either keep the money within their now matured (so “regular” adult) ISA, transfer it to another provider, or withdraw the cash entirely.

Anyone with parental responsibility can open and manage a JISA, which remains in their guardianship until the child reaches adulthood. Contributions can be made by parents, relatives, and friends (depending on your provider), making it a flexible way to feather a nest egg for your child’s future.

What is a Child Trust Fund?

A CTF is, in many ways, a similar savings product, set up for children born between 1st September 2002 and 2nd January 2011.

As mentioned, these accounts were automatically opened using a government voucher and allowed for yearly contributions (which were capped at £9,000).

Like a JISA, the money is also tax-free and designed to be accessed by the child at 18.

CTFs are now closed to new applicants, but if your child has one, you can still pay in or transfer it to a Junior ISA (more on the logistics of that coming up).

What's the difference between a Child Trust Fund and Junior ISA?

We’ve covered what they both are, but let’s take a specific look at how these types of children accounts measure up next to each other.

Obviously, both are designed to help you save or invest for your child’s future, with (as of 2025/2026 tax year) the same annual contribution limit of £9,000. Both accounts mature when the child turns 18, at which point the money belongs solely to them.

However, there are some key differences.

One difference is that when the named child turns 18, a Junior ISA automatically converts into an adult ISA, allowing continued saving or investing. A CTF, on the other hand, simply transfers ownership to the child, with no further contributions allowed.

That means the only choice for the child is to then either withdraw the funds, or if they’d like to move it elsewhere, manage the transfer to a new adult ISA themselves.

Junior ISAs offer a simpler structure, with just two types: Cash, and Stocks & Shares. CTFs, meanwhile, have three types:

• Cash
• Shares
• Stakeholder

CTFs also sometimes come with higher fees² and fewer investment options. Here’s a quick comparison table to dive into the specs of a Junior ISA vs Child Trust Fund:

Junior ISA and Child Trust Fund similarities

Child Trust Funds and Junior ISAs might sound like two very different types of accounts, but they actually have plenty in common.

Both are tax-efficient ways to put money away for your child’s future, meaning any interest or investment gains grow free from tax. They also – at present in 2025 – share a contribution limit, with one key difference being that CTFs reset on the child’s birthday, while JISAs align with the tax year (from 6th April to 5th April). Of course, it’s worth noting, that a child cannot hold both accounts simultaneously.

Whether you go for Cash or Stocks and Shares when selecting a JISA, both products offer flexibility in how the money is held.

However, cash options are generally considered lower risk, while Stocks and Shares could give potential for greater long-term growth, but remember that the value of your investments can go down as well as up, and you could get back less than invested.

Finding lost Child Trust Funds

Realising your child has a CTF, but you don’t know where it is, is a bit like losing your keys – the mild panic makes it harder to stay calm and figure out what’s best to do next.

Thankfully, sourcing a lost CTF should be easier than rummaging around in a backpack or searching behind the sofa cushions.

In other words, don’t stress. The government’s free tracker tool exists specifically to help with this.

Here’s how to use it:

1. Head to the gov.uk website and search for the “Child Trust Fund finder”
2. Log in using your Government Gateway details (you can register or recover your login if needed)
3. Fill out the online form with details like your child’s full name, date of birth and address
4. Sit back – you’ll get a letter within three weeks confirming which provider holds the account

Once you know where the CTF is, you can decide whether to keep it where it is or transfer it to a Junior ISA. We’ve broken down the options (and how to transfer) in detail in our full guide: ‘How to find a lost Child Trust Fund’ – check it out for next steps.

Can you have a Child Trust Fund AND a Junior ISA?

In short, no.

Your child can’t have both a CTF and Junior ISA open at the same time. It’s one or the other.

If your child already has a CTF (and most born between 1st September 2002 and 2nd January 2011 will do), they aren’t eligible for a Junior ISA, unless you decide to transfer the CTF over. This automatically closes the CTF and opens the door to the potential benefits of a JISA.

So, why should you consider switching, and who comes out on top when looking at Child Trust Fund vs Junior ISA? While both options are tax-free and have the same annual contribution limit (at present), some parents/guardians prefer JISAs for the wider provider choice, potentially lower fees, and easier tracking.

Transferring is simple and could give you more control and flexibility over your child’s savings. We’ll cover how exactly to make the move in the next section.

Transferring a Child Trust Fund to Junior ISA

At Wealthify, we offer a Junior Stocks and Shares ISA which gives your child’s savings the potential to grow through long-term investing, all while staying tax-free (up to the annual allowance limit). At present, Wealthify does not offer a Cash Junior ISA.

You can select your preference when it comes to your appetite for risk and even select an Ethical Plan if that’s important to you and your values.

Here’s why many parents and guardians are transferring:

• Lower fees compared to some CTFs
• Wider range of investment options
• Easy online access and tracking
• Contributions reset with the tax year, not the child’s birthday
• There’s a £9,000 annual allowance (it’s worth noting, at present this is the same allowance as for CTF)

And the best bit? It’s a simple process that usually takes no longer than 30 days. To get started, just fill in a transfer form with your chosen provider and they’ll handle the rest – including contacting your current CTF provider and moving the funds over.

Please remember the value of your investments can go down as well as up, and you could get back less than invested. 

Your tax treatment will depend on your individual circumstances, and it may be subject to change in the future. 

Wealthify does not provide financial advice. Please seek financial advice if you are unsure about investing. 

References

1. BBC News | Nearly a million Child Trust Fund Accounts Not Accessed
2. Committee of Public Accounts | Child Trust Funds
3. Government website | Junior Individual Savings Accounts

General resources

1. Government website | Child Trust Funds
2. Money Helper | Junior ISAs
3. Money Savings Expert | Child Trust Fund Vouchers