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

Government consults on child trust funds to Junior ISA transfers

0
Written by:
14/05/2013
The Government has launched a consultation on allowing the transfer of existing savings from Child Trust Fund accounts into Junior ISAs.
Government consults on child trust funds to Junior ISA transfers

It follows the Chancellor’s announcement at Budget 2013 that the government would consider the position of existing Child Trust Funds (CTFS).

Following the abolition of CTFs at the beginning of 2011, the government introduced the junior ISA as part of its latest attempt to encourage a savings culture in the UK.

However, children born between 2002 and 2011 were denied access to the Junior ISA, instead having to continue contributing to their CTF.

The government has previously held firm despite requests for it to permit transfers to JISAs.

However, today’s consultation proposes that, “in the interest of fairness”, children who have a CTF and are therefore ineligible to open a JISA, or transfer their funds to one, should not be excluded from the Junior ISA market if their long-term interests would be better served there.

Sajid Javid, economic secretary to the Treasury, said: “The government wants to support parents by ensuring that there are clear and simple ways to save for all children.

“That is why we introduced Junior ISAs in 2011 and why, in the interests of fairness, we are today consulting on how to give the 6.3m children who have a Child Trust Fund the option to open one too.”

The consultation proposes that voluntary transfers from a CTF to a Junior ISA should be allowed if requested by the registered contact for the account – usually a parent.

Tag Box

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.

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

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...

Money Tips of the Week

Read previous post:
Weak pound pushes up fuel prices for Brits heading to Europe

Motorists travelling to France and Spain this summer should expect to pay significantly more at the pump than a year...

Close