As the years roll by, many young adults across the UK are now reaching their 18th birthdays, marking the exciting maturity of their Child Trust Funds (CTFs). If you're one of them, or a parent wondering about the next steps for your child's Nationwide CTF, this comprehensive guide will walk you through everything you need to know about withdrawing your funds.
Ready to unlock your Child Trust Fund? Let's dive in and get that money working for you!
Understanding Your Nationwide Child Trust Fund (CTF)
First, let's establish what a Child Trust Fund is. CTFs were long-term savings accounts set up by the government for most children born between September 1, 2002, and January 2, 2011. They were designed to ensure that every child had a nest egg when they reached adulthood. Nationwide, like many other providers, managed these funds, investing them either in cash savings or stocks and shares, depending on the initial choice made by the parent or guardian.
The crucial point is that once the child turns 18, the money legally belongs to them. Parents or guardians no longer have control over the funds, and it's up to the now-adult child to decide what to do with the money.
Step 1: Confirm Your Child Trust Fund is with Nationwide
It might seem obvious, but with various providers managing CTFs, it's essential to confirm that Nationwide is indeed where your fund is held.
Sub-heading: How to Confirm Your CTF Provider
- Check your annual statements: Nationwide would have sent annual statements to the registered contact (usually the parent or guardian) detailing the CTF's performance and value. Look for these documents.
- Contact Nationwide directly: If you can't find statements, or are unsure, the simplest way is to contact Nationwide's customer service. They can help you ascertain if they hold your CTF. You'll likely need the child's details, including their National Insurance number.
- Use the HMRC "Find a Child Trust Fund" tool: If you're completely lost and have no idea who the provider is, the HMRC website offers a free "Find a Child Trust Fund" service. You'll need the child's National Insurance number to use this. HMRC will then inform you by post where the CTF is held.
Remember: Do NOT pay for a service to find your CTF. Free government tools are available.
Step 2: Understand What Happens at Maturity
When your Nationwide Child Trust Fund matures (on the child's 18th birthday), it doesn't just disappear or get automatically paid out. Nationwide has a specific process for handling matured CTFs.
Sub-heading: The Automatic Transfer to a CTF Maturity ISA
Nationwide will automatically transfer the funds from your Child Trust Fund into a CTF Maturity ISA on your 18th birthday. This is a temporary holding account designed to keep your money tax-free while you decide on your long-term plans.
- Important Note: You cannot pay any new money into this CTF Maturity ISA. It's solely for the matured CTF funds.
- Interest: Interest will continue to be calculated daily and paid annually into this account.
- Access: While it's a temporary home, you generally won't be able to make partial withdrawals from this account. To access the money, you'll typically need to withdraw the whole balance and close the CTF Maturity ISA.
Step 3: Decide What You Want to Do with Your Money
This is the most exciting part! Your CTF funds are now yours to control. Consider your financial goals and choose the option that best suits you.
Sub-heading: Your Options for Matured CTF Funds
- Withdraw the Entire Balance: You can choose to simply withdraw all the money. This is ideal if you need the funds for immediate expenses like university, a driving license, or a first car.
- Transfer to another Nationwide Savings Account or ISA: If you want to keep saving with Nationwide, you can transfer the funds to a different Nationwide savings account or a new Nationwide ISA (e.g., a standard Cash ISA or a Stocks & Shares ISA, depending on your risk appetite). This can be a good option to continue growing your money or to easily access it for future goals.
- Transfer to another ISA Provider: You're not tied to Nationwide! You can transfer your matured CTF funds to an ISA with a different provider if you find better interest rates or investment options elsewhere. This keeps the money's tax-free status intact.
- Combination of Withdrawal and Transfer: Depending on your needs, you might decide to withdraw a portion of the funds and transfer the rest into a new savings or investment product.
Think carefully about your future plans before making a decision. Consider seeking independent financial advice if you're unsure.
Step 4: Initiate the Withdrawal or Transfer Process
Once you've decided what to do, it's time to take action. Nationwide typically requires you, as the now 18-year-old account holder, to contact them directly.
Sub-heading: Contacting Nationwide to Access Your Funds
- Call Nationwide: The most direct way to initiate the process is to call Nationwide's customer service. Their general savings enquiries number (often found on their website under "Contact Us" or "Savings and ISAs help") is the best starting point. When you call, state clearly that your Child Trust Fund has matured and you wish to discuss your options.
- Be Prepared with Information: Have your National Insurance number and a form of identification (like your passport or driving license) ready. Nationwide will need to verify your identity.
- In-Branch Visit (potentially required): Nationwide states that for CTF maturity, you'll need to call them first to discuss the next steps and whether you need to actually visit a branch. For withdrawing the full balance and closing the CTF Maturity ISA, an in-branch visit might be necessary, especially for identity verification and to process a direct transfer to an external bank account or a cash withdrawal.
- What to bring to the branch (if required):
- Your National Insurance number.
- Valid Photo ID: Passport or driving license are commonly accepted.
- Proof of Address: A recent utility bill or bank statement (dated within the last few months).
- Bank details for external transfer: If you plan to transfer the money to an account with another bank, have the sort code and account number ready.
- What to bring to the branch (if required):
Sub-heading: The Process Flow
- Upon calling Nationwide: They will guide you through your options and explain the specific steps for your chosen action (withdrawal or transfer).
- For full withdrawal/closure: If an in-branch visit is needed, they will confirm this and likely book an appointment or advise you to simply walk in. At the branch, once your identity is verified and forms are completed, the funds can be transferred to your designated account or withdrawn as cash (subject to daily limits).
- For transferring to a new Nationwide product: This might be done over the phone or in branch, depending on the specific product you choose.
- For transferring to another ISA provider: You will typically open the new ISA with the chosen provider and then initiate the transfer from that new provider. They will have a process to contact Nationwide and arrange the transfer directly, ensuring the tax-free status is maintained. This is usually the smoothest way to transfer ISAs.
Step 5: Finalizing the Transaction
Once you've completed the necessary steps, whether by phone or in branch, the transaction will be processed.
Sub-heading: Receiving Your Funds
- Bank Transfer: If you opted for a bank transfer to your current account, the funds should arrive within a few business days, depending on standard bank transfer times.
- Cash Withdrawal: If you requested cash at a branch, you would receive it immediately (again, subject to daily cash withdrawal limits).
- ISA Transfer: If transferring to another ISA provider, the process can take a few weeks as funds are moved between financial institutions while maintaining their tax-free wrapper. The new ISA provider will keep you updated on the progress.
Frequently Asked Questions (FAQs)
Here are 10 common questions about withdrawing a Nationwide Child Trust Fund, with quick answers:
How to find my Nationwide Child Trust Fund details if I've lost them? Contact Nationwide's customer service directly with the child's details, or use the HMRC "Find a Child Trust Fund" online tool.
How to withdraw my CTF before I turn 18? Generally, withdrawals before age 18 are prohibited, except in specific circumstances like terminal illness or death of the child, as per HMRC regulations.
How to avoid paying tax on my CTF money? The CTF itself is tax-free. When it matures, Nationwide automatically transfers it to a CTF Maturity ISA, keeping it tax-free. If you then transfer it to another ISA, it remains tax-free. If you withdraw it to a standard bank account, any future interest earned on that money may be subject to income tax if it exceeds your Personal Savings Allowance.
How to transfer my Nationwide CTF to a Junior ISA (JISA)? This would have needed to be done before the CTF matured. Once it matures, it converts to a CTF Maturity ISA, and you would then transfer it to a new adult ISA or other savings product.
How to contact Nationwide about my matured CTF? Call Nationwide's general savings enquiries line, which can be found on their official website's "Contact Us" or "Savings and ISAs help" pages.
How to know if my CTF was cash or stocks and shares? Your annual statements from Nationwide would have indicated this. If you can't find them, Nationwide customer service can tell you.
How to reinvest my CTF money with Nationwide after it matures? You can ask Nationwide to transfer the funds from the CTF Maturity ISA into another Nationwide savings account or a new Nationwide ISA product (e.g., a Cash ISA or Stocks & Shares ISA).
How to close my CTF Maturity ISA with Nationwide? To close the CTF Maturity ISA, you typically need to withdraw the entire balance. This can often be done via a phone call and potentially an in-branch visit for identity verification.
How to get a cash withdrawal from my matured CTF? After speaking with Nationwide, you may be able to arrange a cash withdrawal at a Nationwide branch, subject to daily limits and identity checks.
How to transfer my CTF to another bank's ISA? Open a new ISA with your chosen provider and instruct them to initiate the transfer of your matured CTF funds from Nationwide. They will handle the transfer process to ensure it remains tax-free.
