Child Trust Fund

LiliasMc

Hi, I'm new here so if I'm in the wrong place please let me know. The most recent post recent on MSE on Child Trust Funds suggested that the top paying Child ISA fund has an interest rate of 4.95% where as the One Family Trust Fund pays only 2.3% and therefore in most cases it made sense to move your child's money out and into a top paying ISA. My daughter currently has £10,000 in her One Family TF (which she will receive in 2027). It is held in a Charity Ethical TF and shows that the average annual yearly growth is 4.9%. There is a further option to change to a Family Investments TF which is invested in a much wider range of worldwide assets with an average yearly growth of 6.6%. I'm confused about MSE saying the return is 2.3% and One Family saying otherwise and I'm wondering if there is something I'm not understanding properly? Obviously I want to move the funds if they are better off in an ISA but from the information on One Family it looks as if I'm just as well keeping the money with them. Grateful for any enlightenment!

theyoungones4

Did no one answer this? I have the same question. My daughter is 17 and I'm just wondering whether to move her money to a child ISA but she's got the Charity Ethical TF and it seems that it's been doing better than the ISA's. That said, with the world economy the way it is, I'd hate her to lose any money this coming year! She's going to need it for uni.