Changes to Child Trust Funds and Junior ISAs

The government may soon allow parents to transfer savings from Child Trust Funds into Junior ISAs

Alanna Petroff 20 March, 2013 | 4:09PM
Facebook Twitter LinkedIn

Chancellor George Osborne's Budget for 2013 outlined that the government plans to look at possible options to allow individuals to transfer savings held in Child Trust Funds (CTFs) into Junior ISAs.

According to the latest Budget: "the government wants to support parents by ensuring that there continues to be a clear and simple way to save for all children."

Investment experts say this is a step in the right direction.

“Finally the powers that be have seen sense! This is great news for parents with savings languishing in uncompetitive Child Trust Funds, and should see everyone on a level playing field," stated Keith Evins from JP Morgan Asset Management.

The director general of the Association of Investment Companies (AIC), Ian Sayers, also welcomed the news

“Today’s announcement is a victory for common sense and consumer choice and will end a two-tier system," said Sayers. "Many Child Trust Fund investors have found themselves ‘locked’ into a product because there is little choice elsewhere. The AIC has long argued that Child Trust Funds should be aligned with Junior ISAs and we very much welcome today’s announcement.”

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

About Author

Alanna Petroff

Alanna Petroff  is a financial journalist with Morningstar UK.