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:
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 Any products featured may be withdrawn by their provider or changed at any time.
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