Join our Child Trust Fund campaign! Tweet the Chancellor to tell him to sort it

Former_MSE_Andrea

Six million children have now-defunct Child Trust Funds (CTFs). The Chancellor failed to help, so we're going to try.

What's it about?

In last week's Autumn Statement, the Chancellor ignored many requests to allow CTFs to be converted into their replacement - junior ISAs - leaving millions of children's cash forcibly languishing in less-competitive accounts in a market with no innovation.

How can you get a better rate?

Up Child Trust Fund interest to 3% AER. Many CTF savings now pay dismal interest. If your child has one, check now. The cash is locked in CTFs until they're 18, but at least you can transfer it to earn more. The top payer's Yorkshire BS at 3% AER (incl a 0.7% bonus for 12mths). Next best's Skipton at a 'clean' 2.65% AER. Full help and how to transfer in Child Trust Funds.

Top paying junior ISAs. Under-18s born before Sep 2002 or after 3 Jan 2011 can save £3,720 tax-free in junior ISAs during the 2013/14 tax year. Coventry BS is the top pick, paying 3.25% AER easy-access. Full info in Top Junior ISAs.

Earn 6% in the top kids' savings account. The best-paying children's account is Halifax's Kids' Regular Saver at a fixed 6% AER, as long as you pay in £10-£100/mth for a year. While it's not a tax-free account, as most kids don't earn enough to pay tax, that's rarely an issue. For full help, see the Top Kids' Savings guide.

What can you do?

Are you annoyed your child's cash is in a defunct account? Tweet the Chancellor to tell him to sort it! Tweet @George_Osborne telling him how allowing CTFs to roll into Junior ISAs is a no-brainer.

We want to hear from you on our @MSE_Forum twitter and the forum too - let us know your opinions by clicking reply to discuss it. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide

Tiddlywinks

When will you start a campaign for the adult savers who actually had to do something for the money?

Interest rates are so low that savings are losing money in real terms.

peachyprice

It was a bloody stupid scheme in the first place.

davington

The CTF page here says

Child Trust Funds (CTFs) are a now defunct tax free savings product, but over 6 million children are still locked into these accounts. The silver lining is you can at least transfer them to up to 3% interest.

what on earth does that bit in bold mean? Methinks this page needs editing.

Spendless

davington wrote: »

The CTF page here says

Child Trust Funds (CTFs) are a now defunct tax free savings product, but over 6 million children are still locked into these accounts. The silver lining is you can at least transfer them to up to 3% interest.

what on earth does that bit in bold mean? Methinks this page needs editing.

It means if you have a child that has a CTF you can transfer it into another CTF that pays upto 3% interest. What you can't do is transfer it into a Junior ISA which has better rates as they are only for children that weren't eligible for the CTF.

I agree with peachyprice that it was a stupid scheme and is the reason I don't contribute to it at all - I save independently elsewhere for them, something I have control over, which you don't with either CTF or Junior ISA as it becomes child's to do with whatever they wish when they are 18, but for those that do contribute they shouldn't be excluded from being able to get better rates.