You are here: Home - Saving & Banking - News -

Child Trust Fund interest rates soar

0
Written by:
19/12/2007

Parents are being urged to reassess their Child Trust Funds as the gap between the best and worst accounts widens.

MoneyExpert.com research shows that average standard interest rates on cash Child Trust Funds have increased by some 1.19% in the past year from 5.15% in October 2006 to 6.34% now.

But the independent financial comparison website says the ongoing savings price war has created a widening gap between the best and worst CTF deals.

MoneyExpert.com’s research shows that at the end of last year the worst paying CTF was only 1.75% below the best buy. However the website’s latest figures show the gap has increased to some 2.75%.

A family that invests the maximum £1,200 in the first year only would lose out to the tune of around £1,780 over 18 years if they took the worst deal compared with the best, according to MoneyExpert.com.

But the losses could be far higher – the website says a family investing the full £1,200 every year for 18 years could potentially miss out on as much as £12,164 in unpaid interest.

Sean Gardner, chief executive of MoneyExpert.com, said: “The gap between the best and worst CTFs is too large to ignore. Many parents are planning to build up a healthy savings pot for their children and CTFs are a great way to do that.

“However, just how much money your kids will eventually be able to access depends to a large extent on the decisions you make now. The rises in the Bank of England Base Rate over the past year have sparked something of a savings price war, and that has extended to Child Trust Funds. If you are careful there’s nothing to stop you from getting a great deal.”

 

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Energy bills could hit £1,000 in 2008

Consumers could see the average household energy bill pass the £1,000 mark in 2008, Tim Wolfenden, head of home services...

Close