Save Extra Cash for Your Junior Investors

Parents can now transfer old Child Trust Funds into Junior ISAs - and these transfers do not count as part of your annual tax-free allowance

Emma Wall 30 April, 2015 | 12:59PM
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Good news for the six and a half million children with savings trapped in Child Trust Funds (CTFs). From this month, parents and guardians can transfer funds saved in poor-performing CTFs into the Junior ISAs, offering them significantly more investment flexibility – and greater opportunities for gains.

This tax year you can deposit up to £4,080 in a Junior ISA

Child Trust Funds were launched in 2002 to encourage parents to think about the long-term finances of their newborns. The Government gifted each child born from 2002 to 2011 with £250 to open the account, but despite the seemingly generous offer, there was a backlash from parents who quickly realised the CTF was restricted to just 14 products, many of which failed to offer their beneficiary a real post-inflation rate of return.

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About Author

Emma Wall  is former Senior International Editor for Morningstar