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You can find the current article at its original source at http://www.guardian.co.uk/money/2013/mar/20/child-trust-fund-junior-isa
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| Version 3 | Version 4 |
|---|---|
| Hope for child trust fund savers as Osborne signals transfer to Junior Isas | Hope for child trust fund savers as Osborne signals transfer to Junior Isas |
| (8 days later) | |
| Families with child trust funds may soon be able to move the cash to Junior Isas after the government confirmed it would launch a consultation on transferring savings between the accounts. | Families with child trust funds may soon be able to move the cash to Junior Isas after the government confirmed it would launch a consultation on transferring savings between the accounts. |
| Following pressure to relax the rules on the tax-free accounts, the budget report promised to look into changing the system, saying that the government "wants to support parents by ensuring that there continues to be a clear and simple way to save for all children". | Following pressure to relax the rules on the tax-free accounts, the budget report promised to look into changing the system, saying that the government "wants to support parents by ensuring that there continues to be a clear and simple way to save for all children". |
| Child trust funds (CTFs) were a Labour initiative to promote saving and were available to children born between 1 September 2002 and 2 January 2011, with the government initially providing a starting voucher of £250. That was reduced to £50 as the accounts were phased out for new savers, before being replaced with Junior Isas. | Child trust funds (CTFs) were a Labour initiative to promote saving and were available to children born between 1 September 2002 and 2 January 2011, with the government initially providing a starting voucher of £250. That was reduced to £50 as the accounts were phased out for new savers, before being replaced with Junior Isas. |
| Since then parents who had opened a CTF have been unable to start a Junior Isa for the same child, or to move the money into one, meaning many are now stuck in accounts that providers have superseded with better-paying Junior Isas. | Since then parents who had opened a CTF have been unable to start a Junior Isa for the same child, or to move the money into one, meaning many are now stuck in accounts that providers have superseded with better-paying Junior Isas. |
| An estimated 6m CTFs are in operation, each holding an average of £750. | An estimated 6m CTFs are in operation, each holding an average of £750. |
| Danny Cox, head of financial planning at independent financial advisers Hargreaves Lansdown, welcomed the announcement. | Danny Cox, head of financial planning at independent financial advisers Hargreaves Lansdown, welcomed the announcement. |
| "Common sense has broken out at last. 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," he said. | "Common sense has broken out at last. 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," he said. |
| "This consultation will pave the way for a significant improvement in choice and outcomes for over six million children and ultimately lead to a full merger." | "This consultation will pave the way for a significant improvement in choice and outcomes for over six million children and ultimately lead to a full merger." |
| Top savings accounts | Top savings accounts |
| Skipton BS | Skipton BS |
| Manchester BS | Manchester BS |
| West Brom BS | |
| Powered by MoneySupermarket for the Guardian | Powered by MoneySupermarket for the Guardian |