If you have a child trust fund, you’ll be able to transfer it to a junior ISA from April 2015
The government will change the rules so that child trust funds will be able to be merged with junior ISAs.
If your child has a child trust fund, you’ll be able to transfer it to a junior ISA from April 2015, under plans announced by George Osborne in an interview today. At the moment, due to a badly-thought through policy of ditching child trust funds and introducing junior ISAs, your child can’t have both a child trust fund and a junior ISA, and you can’t transfer one to the other.
Are you getting the best return on your child trust fund?
If you have a cash child trust fund account, should you transfer it for a better return?
There are around six million children with child trust fund accounts – the tax-free savings or investment account set up by the previous government. They were abolished in 2011 (although existing accounts can continue) and many providers have cut the interest rate they pay. But, you can get around 3% interest if you're prepared to transfer your CTF.
Which junior cash ISAs pay the highest rate of interest?
If you want the best junior cash ISA for your child, which accounts are worth looking at?
Junior ISAs were launched in November 2011 - the government's replacement for the child trust fund, which was abolished in January the same year. They work in a similar way to 'adult' cash ISAs, which means that interest is paid tax free. However, unlike an adult cash ISA, you have to leave money in the junior ISA until your child is 18 (although they can transfer it between providers). Which pay the best rates?