CTF News

« Back to All Posts

Child Trust Funds: What do they mean by Zombie Accounts?

As Child Trust Fund laws change we ask the question why the media have labelled existing Child Trust Funds ‘Zombie Accounts’.

Recent users of this term include The Financial Times, The Telegraph and The Sunday Times. They have all referred to child trust fund money being trapped in zombie accounts paying low interest rates of with little fund choice.

The word ‘Zombie’ can relate to a rum cocktail, a film or a person involved in witchcraft but another definition gives reference to an person who is lifeless, apathetic or unresponsive to their surroundings. This gives an accurate reason for the term in this context. After it was decided that Child Trust Fund vouchers should cease many asked the question: ‘What now for the CTF’s already in existence?’ Until now the government response has been apathetic.

Whilst many claimed that Junior ISA’s offered higher interest rates or better fund choice than child trust funds, there was also the issue of what happens to the monies on maturity. With a Junior ISA tax free status could continue, with a Child Trust Fund this couldn’t happen.

Eventually, over the Christmas period in 2013 the government finally responded. Voluntary transfers will now be allowed from April 2015 and life can once again be breathed into lifeless accounts.

For more information on how to transfer to The Children’s ISA visit www.thechildrensisa.com

Contact Us

Email: hello@TheChildrensISA.com

Address: 1 Lowry Plaza, The Quays M50 3UB

The Children's ISA

© The Children's ISA Ltd 2020. All rights reserved.

The website and the information contained therein should not be regarded as an offer or solicitation to conduct investment business in any jurisdiction other than the UK. Past performance is not necessarily a guide to future performance and the value of your investment may fall as well as rise, and any income received in the form of dividends may fluctuate. You may not get back the full amount when the account is closed. If paying regular monthly contributions please bear in mind that if contributions are not maintained you will be less likely to achieve the investment amount that was originally projected.

The information on this website is not advice, it is provided solely to enable you to make your own investment decisions. The investments and / or investment services referred to may not be suitable for all investors. If you are unsure of the suitability of any investment, you should contact Cottons Financial Planning for advice.

The Children’s ISA Limited is authorised and regulated by the financial services authority. (FCA No: 563043)
The Children’s ISA Limited is a company registered in England and Wales.
Registered Office: 1 Lowry Plaza, The Quays Manchester, M50 3UB. Registered Company Number: 07486015

The Children's ISA is provided by Avalon Investment Services Ltd.
Avalon Investment Services Ltd. is authorised and regulated by the financial services authority.
Avalon Investment Services Ltd. is a company registered in England and Wales.
Registered Office: 2 Market Place, Tetbury, Gloucestershire, GL8 8DA.