Congratulations on your Child Trust Fund (CTF) reaching maturity! This is an exciting time, as you now have control over a lump sum of money that has been growing for you. Many people choose to move this money into an Adult ISA to continue benefiting from tax-free growth. If you're a Nationwide customer, or even if your CTF was with another provider and you're looking to move it to Nationwide, this comprehensive guide will walk you through the process step-by-step.
Your Child Trust Fund Has Matured – Now What?
First off, how exciting is it that you've reached this milestone? This is your money, and you have some important decisions to make about its future. Nationwide, like other providers, will typically convert your matured CTF into a CTF Maturity ISA when you turn 18. This is a temporary holding account designed to keep your funds tax-efficient while you decide on your next steps. It's crucial to understand that you cannot pay any new money into this CTF Maturity ISA. It's simply a place for your existing CTF funds to reside until you choose to move them.
Ready to take control? Let's dive in!
Step 1: Understand Your Options (and Why an ISA is a Great Choice!)
Before you do anything, it's vital to understand what you can do with your matured CTF. While you could withdraw it all and spend it, or transfer it to a regular bank account, many choose to keep it in an ISA wrapper for the continued tax benefits.
- Withdraw the money: You can take all the money out. This might be suitable if you need it for a specific immediate expense, like a car or university costs. However, remember that once it's out of an ISA, any future interest or growth on that money will be taxable.
- Transfer to a regular savings account: You could move it to a standard savings account. This offers easy access but typically lower interest rates than ISAs, and any interest earned would be subject to income tax.
- Reinvest within an ISA (recommended for continued growth): This is often the most financially savvy option. By transferring your matured CTF funds into a new Adult ISA (Cash ISA, Stocks & Shares ISA, or even a Lifetime ISA, depending on your goals), you can continue to grow your money free from UK Income Tax and Capital Gains Tax. Nationwide offers various ISA options.
Why is an ISA a good choice? Because it allows your money to grow without the taxman taking a slice of your profits. This means more money stays in your pocket!
Step 2: Gather Your Documents and Information
Preparation is key to a smooth process. Before you contact Nationwide or another provider, make sure you have the following readily available:
- Your CTF Maturity ISA details: This includes your account number and sort code. These details should have been provided to you by Nationwide (or your previous CTF provider) around the time of your 18th birthday.
- Proof of Identity (ID): This is usually a valid passport or UK driving license.
- Proof of Address: A recent utility bill (within the last 3 months), bank statement (within the last 3 months), or council tax bill (for the current financial year). Ensure your ID and address details match what Nationwide has on file. If they don't, you might need to update them first.
- Your National Insurance (NI) Number: You'll need this for any new ISA application.
- Details of your chosen new ISA (if transferring to another provider): If you're moving your money to an ISA with a different bank or building society, you'll need their account details.
Step 3: Contact Nationwide (The First Crucial Step!)
Nationwide clearly states that you need to contact them to arrange what to do with your Child Trust Fund proceeds when the account matures.
Sub-Step 3.1: Reaching Out
- Call Nationwide: This is often the quickest way to get specific guidance. Have your CTF Maturity ISA details ready. They will explain your options and the next steps.
- Visit a Nationwide Branch: If you prefer face-to-face assistance, head to your nearest Nationwide branch. Bring all your documents with you. They can guide you through the process and help with any forms.
Remember: You can do this anytime from the day you turn 18.
Step 4: Making Your Decision and Instructing Nationwide
During your contact with Nationwide, you'll need to confirm what you want to do with your funds.
Sub-Step 4.1: Staying with Nationwide
If you decide to keep your money with Nationwide and move it into another Nationwide ISA (e.g., a Cash ISA or Stocks & Shares ISA):
- Nationwide's Process: They will guide you through opening a new ISA account with them. This typically involves an internal transfer process, which is usually quicker and simpler than transferring to another provider.
- Online Application (if applicable): For some Nationwide ISA products, you might be able to complete the application and transfer process online after discussing it with them.
- Paperwork: You may need to sign a form to authorize the transfer from your CTF Maturity ISA to your new Nationwide ISA.
Sub-Step 4.2: Transferring to Another ISA Provider
If you've decided to move your money to an ISA with a different bank or building society:
- Do NOT Withdraw the Money Yourself! This is a critical point. If you withdraw the money from your CTF Maturity ISA into a regular bank account and then try to deposit it into a new ISA, it will lose its tax-free status and count towards your annual ISA allowance.
- Contact Your New ISA Provider First: The correct way to transfer an ISA is to initiate the transfer from the new ISA provider's side. They will have an "ISA transfer form" (either online or paper).
- Complete the Transfer Form: Fill out this form with details of your Nationwide CTF Maturity ISA. You will authorize the new provider to request the funds from Nationwide on your behalf.
- The New Provider Handles the Transfer: Once you submit the form, your new ISA provider will contact Nationwide directly to arrange the transfer of funds. This ensures the tax-free status is maintained.
Step 5: The Transfer Process and Confirmation
Once you've given your instructions (either to Nationwide for an internal transfer or to your new provider for an external transfer):
- Waiting Period: ISA transfers can take some time. For Cash ISAs, providers generally have 15 working days to complete the transfer. Stocks and Shares ISAs can take up to 26 working days.
- Nationwide's Role: Nationwide will process the request from your new provider (or their own internal transfer) and release the funds.
- Confirmation: Both Nationwide and your new ISA provider (if applicable) should confirm with you once the transfer is complete. You should see the funds appear in your new ISA account.
Step 6: Review Your New ISA and Plan for the Future
Once the money has successfully moved:
- Check Your New Account: Log in to your new ISA account and confirm that the full amount from your CTF Maturity ISA has been transferred correctly.
- Understand Your New ISA's Terms: Familiarize yourself with the terms and conditions of your new ISA, including interest rates (for Cash ISAs), charges (for Stocks & Shares ISAs), withdrawal rules, and how to manage the account.
- Consider Future Contributions: Now that you have an Adult ISA, remember you have an annual ISA allowance (currently £20,000 for the 2025/2026 tax year, but always check the latest HMRC guidelines). You can continue to contribute to your ISA to grow your savings further.
Important Considerations:
- Interest Rates: Your CTF Maturity ISA may have a variable interest rate, which might not be the most competitive. Transferring to a new ISA with a better rate could significantly boost your returns.
- Risk Tolerance (Stocks & Shares ISA): If you're considering a Stocks & Shares ISA, remember that investments can go down as well as up. It's crucial to understand the risks involved and only invest money you're comfortable losing.
- Lifetime ISA (LISA): If your goal is to save for your first home or for retirement, and you're between 18 and 39, a Lifetime ISA could be an excellent option as it offers a 25% government bonus on your contributions (up to £4,000 per year). However, there are strict withdrawal rules and penalties if you don't use it for a qualifying purpose.
- Financial Advice: If you have a substantial sum in your CTF and are unsure about the best option for your circumstances, consider seeking independent financial advice.
Frequently Asked Questions (FAQs)
Here are 10 common questions about moving money from a CTF Maturity ISA at Nationwide, with quick answers:
How to find my Nationwide CTF Maturity ISA account number? You should find your account number on any statements or correspondence sent to you by Nationwide regarding your Child Trust Fund's maturity. If you can't find it, contact Nationwide directly.
How to transfer my CTF Maturity ISA to a different bank? Do not withdraw the money yourself. Instead, contact the new bank or building society where you want to open an ISA and ask them for an "ISA transfer form." They will handle the transfer from Nationwide directly.
How to know if my CTF has matured? Your Child Trust Fund matures on your 18th birthday. Your CTF provider (Nationwide in this case, or the original provider) should have contacted you in the months leading up to your birthday to explain your options.
How to withdraw money from my Nationwide CTF Maturity ISA? Nationwide's CTF Maturity ISA typically requires you to withdraw the entire balance and close the account if you wish to take money out. You can arrange this by contacting Nationwide by phone or visiting a branch.
How to avoid losing my tax-free status when moving CTF money? Always use the official ISA transfer process. Do not withdraw the money into a non-ISA account and then try to re-deposit it. The new ISA provider should initiate the transfer.
How to find out how much is in my Nationwide CTF Maturity ISA? You can usually find this information on your latest statement. Alternatively, you can contact Nationwide directly by phone, online banking (if registered), or by visiting a branch.
How to continue saving tax-free after my CTF matures? Transfer the funds from your CTF Maturity ISA into a new Adult ISA (Cash ISA, Stocks & Shares ISA, or Lifetime ISA) with Nationwide or another provider.
How to transfer my Nationwide CTF Maturity ISA to a Stocks & Shares ISA? If you wish to do this with Nationwide, discuss your options with them directly. If moving to another provider's Stocks & Shares ISA, initiate the transfer via the new provider.
How to close my CTF Maturity ISA with Nationwide? If you wish to withdraw all the funds, this will typically involve closing the CTF Maturity ISA. Contact Nationwide by phone or in branch to arrange the full withdrawal and account closure.
How to get financial advice on my matured CTF money? You can speak to an independent financial advisor (IFA). You can find IFAs through directories like Unbiased.co.uk in the UK. Nationwide may also offer their own financial advice services, but an IFA can provide a broader market view.
