skip to main content
21st
Mar 2013
/

Child Trust Funds may soon be tranferred to Junior ISAs

George Osborne today announced plans to set the wheels in motion for transferring the £4.8billion currently tied up in child trust funds (CTFs) into Junior ISAs, which offer better rates of interest. The Budget report states that a 12-week consultation will take place to determine the logistics of the transfer process.

Savings locked away

Child trust funds were launched in 2005 and were promised as a long-term savings vehicle available to children born between September 1, 2002, and January 2, 2011. There are an estimated six million child trust funds in Britain, each one holding on average £750. Until today's proposals, parents of children with CTFs haven't had the option to move their balance to gain more attractive terms.

Hope for parents

Danny Cox, of Hargreaves Lansdown, welcomed the news, saying: "We have already seen examples of where children with CTFs have been disadvantaged compared to those with Junior ISA. Common sense has broken out at last. Child trust funds have been in terminal decline since 2011, seeing millions trapped in expensive products or suffering lower interest rates than their Junior ISA counterparts. This consultation will pave the way for a significant improvement in choice and outcomes for over 6 million children and ultimately lead to a full merger."

Lifetime ISAs

Save for your first home and retirement

Compare Lifetime ISAs

Junior ISAs

Invest for your child’s future

Compare Junior ISAs: 

Stocks & Shares ISAs

Invest tax-free in stocks and shares 

Compare Stocks and Shares ISAs:

Latest News

5 Considerations for Your Next Investment ISA

15th March 2021

You've decided to invest your savings into a Stocks and Shares ISA. You'll be using your tax-free ISA allowance for this year before the deadline, while also investing your money for your future. But what do you need to consider before opening an account? We've put together a list of our top five considerations for you to think about before you click "apply". 

Newsletter Signup

Sign up to our Newsletter to get exclusive news and offers direct to your inbox.

About us

ISA.co.uk is a trading style of Fair Investment Company.

We've been comparing and recommending ISAs for many years so you can trust you're in good hands.

About us