Stay in control of your Child's Trust Fund - Savings - News - Moneyfacts

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Stay in control of your Child's Trust Fund

Stay in control of your Child's Trust Fund

Category: Savings

Updated: 15/02/2013
First Published: 15/02/2013

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 It is now over 6 months old so the content may be out of date.

According to latest figures, at least 2.8 million families are choosing to invest regularly into Child Trust Funds (CTFs), despite the Government's decision to phase out the products more than two years ago.

Saving regularly into a CTF remains the second most popular method of putting money aside for a child's future behind the hundreds of standard savings accounts offered by high street banks and building societies.

CTFs were ditched by the Government in January 2011, as they were deemed too expensive. Each CTF included a £250 initial payment along with a further £250 when the child reached their seventh birthday.

Despite their ongoing popularity, rates for CTFs have tended to dwindle of late, whilst the withdrawal of products in the market, as providers focus on products that are open to new business, such as Junior ISAs, has also restricted choice for parents and guardians.

Recent reports of increased fees and charges on existing CTFs have also alarmed many families, with investment charges on various stocks-and-shares CTFs blasted by some consumer groups as being unfairly high.

As with any investment product, it is always wise to stay on top of changes within the marketplace, as well as with an existing product, to ensure you can keep your investment options open.

Check out our table of the current CTF products:

Transfers
Company
Rate
AER
Min
Min
Int
In
Out
Inv
Addition
Paid
Furness BS
3.05%
3.05%
£50
None
Yly
Yes
No Penalty
Yorkshire BS
3.00%
3.00%
£50
None
Yly
Yes
No Penalty
Introductory bonus:
Rate includes 0.70% bonus for 12 months
Earl Shilton BS
2.85%
2.85%
£50
£10
Yly
Yes
No Penalty
Skipton BS
2.65%
2.65%
£50
£10
Yly
Yes
No Penalty
Monmouthshire BS
2.50%
2.50%
£50
£1
Yly
Yes
No Penalty
Locals only







Ipswich BS
2.40%
2.40%
£50
£1
Yly
Yes
No Penalty
Locals only







Rate guarantee:
Rate guaranteed to be the same as the Junior ISA rate.
Shepshed BS
2.00%
2.00%
£50
£1
Yly
Yes
No Penalty
Conditional bonus:
1.25% bonus pa for first 2 years for accounts topped up by a minimum of £600 per birthday year.
Rate guarantee:
Gross Rate guaranteed to be No more than 1.00% below Bank Base Rate
Nationwide BS
1.10%
1.10%
£50
£1
Yly
Yes
No Penalty
Conditional bonus:
1.00% bonus pa for accounts topped up by a minimum of £240 per account year.








Source: www.moneyfacts.co.uk Rates correct as of: 15 February 2013

What Next?

Compare the Best Children's Savings Accounts

Save up to £3,600 for your child in 2012-13 with a Junior ISA

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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