Could Baby Bonds Get Kids Saving?

Child trust funds and Junior Isas were designed to build savings pots for your people. But could Baby Bonds be the way to close the wealth gap?

Andy Pettit 21 October, 2020 | 9:26AM

baby bonds

In September, the first group of British 18-year-olds received the proceeds of a gift given them by the government when they were born. 

That gift was £250 (or £500 for children of disadvantaged families) in the form of a Child Trust Fund, introduced on September 1, 2002. Those children turning seven before August 1, 2010 also received a top-up. In 2011, the entire scheme was replaced by the Junior Isa, but by then some 6.1 million newborns had already received a CTF voucher. 

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How Baby Bonds Could Close the Wealth Gap

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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.

About Author

Andy Pettit  Director, Policy Research (EMEA), Morningstar

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