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Parents still favour CTFs for child’s future

Parents still favour CTFs for child’s future

Category: Savings

Updated: 15/04/2013
First Published: 15/04/2013

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Child trust funds (CTFs) are still the most popular form of building a financial nest egg for a child's future, despite the funds being closed to new entrants since 2011.

According to the latest Halifax Share Dealing Market Tracker, over 48% of people still consider CTFs to be the best place to invest money for their children.

The number of people placing money in a junior ISA (JISA) appeared to improve with 27.6% stating they had invested in the deals. Despite a big fanfare at their launch in 2011, take up of the deals was reportedly subdued during the first year of availability.

Over 10% of parents invested their child's ISA allowance in a junior stocks and shares ISA, with 13.8% investing in a stocks and shares ISA on behalf of their children.

Over 20% of people said they had chosen premium bonds as a way of investing in their child's future.

Damian Stansfield of Halifax, said: "The current rules prevent children with a CTF from opening a Junior ISA, but the options for transferring savings held in CTFs into JISAs are now being consulted on.

"It will be interesting to see what happens if these rules change as CTFs still hold some advantages over JISAs.

"Whatever happens, the important thing is that if investors are not currently saving for their children and are able to do so then even modest regular investments could grow in time to provide help with a first car, further education or even a first house," he said.

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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