People saving money for children in Child Trust Funds (CTF) could have their potential payouts cut by more than £300 million over the next ten years because they cannot transfer into higher paying Junior Isas (individual savings accounts).
That’s the message from a new study by Which?, the consumer champion. It found that the average Junior Isa is paying a fifth more interest than the typical CTF. For example Nationwide’s CTF account pays just 1.1 per cent, but its Junior Isa account pays 3 per cent (including a 0.9 per cent one-year bonus).
The best CTF rate, of 3 per cent, from Yorkshire Building Society, includes a bonus of 0.7 per cent , whereas the very top Junior Isa rates of 3.02 per cent, come