When the beneficiary of a Child Trust Fund reaches their 18th birthday Healthy Investment automatically transfers them into the Healthy Investment All-Share ISA with no impact on that year’s ISA subscription limit.

Once their CTFs have converted into adult ISAs, members are able to withdraw their funds as they wish. However, of those CTFs whose beneficiaries reached 18 after 1 September 2020, 80 per cent of them have chosen to keep their money invested in a Healthy Investment ISA rather than cashing it in.

Peter Green, Chief Executive of Healthy Investment, said, “We have always done our best to educate members, young and old, about the value of long-term investment, and it is heartening to see that our youngest members have been taking these lessons on board.

“Some people might argue that the pandemic has reduced the scope for young people to spend this money anyway, but I’m not so sure. Given the year that most 18-year-olds have just had it would be hard to blame them, when given access to a significant sum of money, for using it to buy whatever they could to brighten up their lives.

“The fact that the overwhelming majority have not done so demonstrates a maturity and long-term outlook that I can only commend, and that I hope will mark the beginning of a lifelong savings habit. Our matured CTF members are now the holders of adult ISAs, arguably the most effective savings and investment products ever designed, and, by keeping their funds invested, they have taken the first step toward a more secure future.

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