It has recently been announced after the Chancellor’s autumn statement that the 6 million children with savings in Child Trust Funds (CTF) will now have the option to transfer to a Junior ISA.
This means that, from April 2015, existing holders of a CTF can voluntarily opt to join the new savings regime the Junior ISA and transfer their current account balance to a new product and provider.
Many CTF accounts held in cash deposits with UK banks and building societies will be able to hunt for better interest rates offered through the increasingly competitive cash junior ISAs. Meanwhile, those with stocks and shares CTFs can look for better investment returns through the newly developed Junior ISA market.
Savings Director at junior ISA provider ‘The Children’s ISA’ said: ‘At a tough economic time parents do right to shop around for the best deal. Managing money efficiently can make a great long-term difference. Many parents didn’t choose where to save but were allocated a provider by the government. There is now the chance to choose again what level of risk you want to take, whether you want the money managed actively or not and whether you have any ethical or religious mandate you would like the money managed to. This change could really help you take control of your child’s savings future’.
For more information on The Children’s ISA please visit www.thechildrensisa.com