Child Trust Fund vs Junior ISA: What is the difference?

The Junior ISA replaced the Child Trust Fund (CTF) back in 2011, but many children still have CTFs. 

If you or your child is still holding on to a CTF account, you may be asking what you should do with it. You may even be asking, “CTF or Junior ISA?”

Check out the comparisons and sections below to find out key differences, transfer rules, and why a Junior ISA could help you avoid losing track of your child’s savings.

Key differences between a Child Trust Fund and Junior ISA

The main difference between a CTF and a Junior ISA is simply that the former are no longer available, as the latter replaced them in 2011. 

But there are nuanced differences in how the accounts function, which might impact whether CTF holders choose to transfer. Check out the table below for a quick rundown, though the article will go into greater detail further down.

Remember: There are other limitations on opening a Junior ISA. A child can have one stocks and shares Junior ISA, and one cash Junior ISA. However, they cannot have more than one of the same type at the same time. In addition, a child cannot have a Junior ISA and a CTF at the same time. 

If your child has a Child Trust Fund, here’s what to know

With no way to open new accounts and old CTFs maturing year by year, the number of CTF accounts is decreasing. This means there is no real pressure on providers to innovate, add new features, or compete for CTF customers.

That might not alarm you, but it can lead to accounts being forgotten or left behind.

Perhaps the most worrying thing is that, according to HMRC data, a whopping 758,000 accounts were matured but unclaimed as of 5 April 2025. With the average market value of a matured but continuing account at £1,980, that could be over £1.5bn unclaimed.

It can be easy to forget a dead account tucked out the way from the rest of your family’s finances. 

With Freetrade, you can keep a Junior ISA in the same place you manage your ISA, SIPP, and GIA. With everything in one app, your child’s Junior ISA is always just a tap away. 

New features, investments, and content rolling out regularly means it’s easier to stay engaged and ensure your child gets their financial head-start.

What is a Child Trust Fund (CTF)?

The CTF was launched in 2002, but discontinued in 2011 when they were replaced by the Junior ISA.

Some of the account’s key features were: 

• Tax-free growth: No income or capital gains tax on growth.
• Account types: Cash accounts and investment-based accounts were both available.
• Eligibility: CTF’s were for children born between 1 September 2002 and 2 January 2011. 
• Government contribution: the government paid an initial voucher into the account, with larger payments for some lower-income families. The aim was to give children a financial asset at adulthood and encourage saving.
• Parental management: Everything in a CTF account belongs to the child. However, the account is managed by a parent or guardian until the child could take some control at age 16, or withdraw from 18.
• Maturity: At 18, the young person could withdraw from the account or opt to convert their CTF into an adult ISA.
• Contributions: Family and friends could add money. Existing CTFs can still receive up to £9,000 per year.
• Traceable: HMRC has a free service to find lost CTFs.

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What’s key to know now is that new accounts are no longer available.

What is a Junior ISA (JISA)?

A Junior ISA is another tax-efficient wrapper for under-18s. It functions similarly to an adult ISA, with a couple of key differences.

Some of the account’s key characteristics:

• Tax-free growth: Growth is tax-free.
• Cash/Stocks and shares: You can choose between cash Junior ISAs, or stocks and shares Junior ISAs. A child can have ONE of each type of account.
• Opening: Accounts can be opened by the parent or legal guardian of a child who lives in the UK, or a dependent of a Crown Servant living abroad.
• Paying in: Some providers allow anyone to contribute, though Freetrade’s Junior ISA only allows contributions through the account’s registered contact.
• Management: The account is managed by a registered contact, usually the parent or guardian who opened it.
• Partial maturity: At 16, a child can gain some control of the account and become its registered contact. However, they cannot withdraw from the account.
• Full maturity: At age 18, a child gains total control of the account. It automatically becomes an adult ISA of the same variant. So, a stocks and shares Junior ISA becomes a stocks and shares ISA.
• Ownership: Money and assets held within a Junior ISA belong to the child. The account’s registered contact may not withdraw.

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Can you have both a Child Trust Fund and a Junior ISA?

You CANNOT have both a Child Trust Fund and a Junior ISA. If a child has a Child Trust Fund and you want to open a Junior ISA for them, you need to transfer the Child Trust Fund into the new Junior ISA in full. 

How to transfer a Child Trust Fund to a Junior ISA

For a full explainer, check out Freetrade’s Junior ISA transfer guide. A step-by-step transfer looks like this: 

1. Pick your new Junior ISA provider and account. Make sure to check your new provider accepts CTF transfers.
2. Start the Junior ISA account opening process. As part of the account opening process, you will be asked if you want to transfer in.
3. Fill in a transfer form. Remember, you must transfer the full balance. Once the form is complete, the ball is in your new provider’s court.
4. Your new provider will contact the CTF provider to organise your transfer. You might be contacted for any additional details.
5. The transfer is completed, and the old CTF is closed automatically. You should receive a confirmation from your new provider.

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See how to transfer your CTF to a Freetrade Junior ISA in minutes.

Should you transfer your Child Trust Fund?

Why transfer a Child Trust Fund?

• Rates: For cash-based CTFs, you might find your current provider offers a low interest rate compared to the competition. In this case, you might consider transferring to a cash JISA with better rates, or to a stocks and shares JISA. 
• Features: Because CTFs are older products, they might lack features like on-the-go app-based management. Junior ISA products are more likely to feature up-to-date tech. 
• Choice: CTFs can be restricted to quite limited investment options. Meanwhile, some stocks and shares Junior ISAs feature access to thousands of different stocks, ETFs, funds, and other instruments. 
• Fees: Check how much your current provider charges. Fees and charges for CTFs and JISAs can vary considerably, with some providers charging 1.5% and others offering no account fees.

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Why not transfer a Child Trust Fund?

• Maturity: If the beneficiary is nearing 18, there might not be much benefit to switching their account.  
• Good service: Why move if you are happy with the Child Trust Fund’s service and features? Sticking with a product you are happy with can be a good choice.

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Remember: You cannot open a new CTF, even to transfer an existing CTF. Make sure not to waste time browsing CTF products, as you will not be able to open one.

Which Junior ISAs accept CTF transfers?

Not every Junior ISA provider will accept transfers from Child Trust Funds, so it’s good sense to check. 

Freetrade does accept Child Trust Fund transfers. You can get started with the Junior ISA transfer page.

CTF vs Junior ISA FAQs

Which is best, Child Trust Fund or Junior ISA?

Depending on your or your child’s circumstances, either account could be better suited. If you are looking to open a new account, be aware that Child Trust Funds are no longer available. 

Can I have both a CTF and a Junior ISA?

You cannot have a Child Trust Fund and a Junior ISA at the same time. 

What is the difference between a CTF and an ISA?

An ISA is a tax-efficient account for adults, with an annual ISA limit currently set at £20,000 per tax year. However, children can have a Junior ISA, which carries a £9,000 annual limit.

Child Trust Funds are also accounts for children and have a £9,000 annual limit. You can no longer open a new Child Trust Fund account, as they were replaced by the Junior ISA.

Can I transfer a CTF to a Junior ISA?

You can transfer a Child Trust Fund to a Junior ISA in most cases. Just be aware that this will require you to close the Child Trust Fund account.

How do I transfer a Child Trust Fund to a Junior ISA?

You can start a transfer by applying top open a new Junior ISA. You can find out more in Freetrade’s guide to transferring. 

Should I transfer my CTF to a Junior ISA?

Child Trust Funds often feature poorer rates or more limited flexibility than Junior ISA’s, so transferring might be a good option. However, a transfer may not always be appropriate. 

Which providers accept CTF transfers?

Not all providers will accept a Child Trust Fund transfer into a Junior ISA. However, Freetrade does accept transfers. You can initiate one by starting to open a Junior ISA through the Junior ISA transfer page.