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

Govt lifts ban on transfers from child trust funds to Junior ISAs

0
Written by:
23/12/2013
The government will permit the transfer of cash saved in now-defunct child trust funds (CTFs) to junior ISAs.

The Chancellor, George Osborne, said the decision “supports hard-working families who want to save for their children”, reports the Daily Mail.

JISAs were introduced in 2011 to replace CTFs, which were no longer receiving government contributions.

Child trust funds were introduced by Labour and gave parents of every child born in Britain from 2002 seed money of £250.

However, transfers from CTFs to JISAs have previously not been permitted. It was hoped a rule change would be introduced in the Autumn Statement earlier this month, but Osborne did not mention the savings plans. 

Danny Cox of Hargreaves Lansdown said: “This is great news. The days of the Child Trust Fund have been numbered since the launch of the Junior ISA. Child trust funds have been in terminal decline since 2011, seeing millions trapped in expensive products or suffering lower interest rates than their Junior ISA counterparts.

“This change will pave the way for a significant improvement in choice and outcomes for over 6 million children. Transfers should happen from April 2015 and in the meantime, parents and grandparents who are saving into Child Trust Funds for their children or grand-children should continue to do so”

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.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

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...

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:
Top 5 mistakes to avoid when buying income protection

Income protection is one of the most important types of financial protection you can have, but it can also be...

Close