The government has announced plans to allow savings invested into a Child Trust Fund to be transferred to the newer child savings account, the Junior ISA following a public consultation. The move could potentially benefit over 6 million children with savings deposited in a Child Trust Fund.
More potential home buyers have said that they would rather have been offered better savings rates to help them save to buy a home than the cheaper credit that has been made available from mortgage lenders under the Government’s Help to Buy scheme.
If you’re looking to save for your child’s future, then you may be wondering what the best way to do so is. Junior ISA’s are the Governments answer to the discontinued Child Trust Fund and are an easy and very accessible way to save for your child’s future. But which to choose? Stocks and shares? Or cash?
The Bank of England has revealed that �£23 billion has been withdrawn from long-term savings accounts over the last 12 months, in what is the biggest drop in savings for almost 40 years.
The shortfall, which accounts for almost �£900 for every household in the country has either been spent or moved to the more accessible current account and has been attributed as a reaction to low interest rates which in some cases are little over 1 per cent.
So-called â??teaserâ?? rates on cash savings accounts are to be investigated by the Financial Conduct Authority (FCA). The headline rates are put on savings accounts to attract consumers, but usually only last for a specific period of time, usually a year. After this initial period the rates fall, sometimes significantly, leaving savers earning a poultry amount of interest on their money.
National Savings and Investments (NS&I) officials have released details about nearly 900,000 unclaimed premium bond prizes, which amass to a total value of £44m.
The 898,000 prizes stretch over more than five decades, with the earliest unclaimed prize from 1957
The Government has launched a consultation into planned changes which will allow parents to swap their Child Trust Funds (CTF) for Junior ISA’s. The consultation will be open until 6th August 2013, and a decision will be made after this time.
The Government will consider responses from representative groups for children or savers, CTF holders, providers of CTF’s and Junior ISA’s, as well financial advisors.
For the first time in their 14 year history, Isa’s have experienced a fall in their savings value, as low interest rates, rising inflation, and a lack of trust deter savers.
Cash Isa’s are tax-free savings accounts with an annual investment limit and since their introduction in 1999 have grown strongly in line with an expanding savings culture across the UK.
Following on from repeated pressure to act, the Government has announced that they will consider allowing the transfer of Child Trust Fund (CTF) accounts to Junior ISA’s.
The Chancellor devoted part of the 2013 Budget to personal savings, and made reference to the fact that there is a chance that approval may be given to switch from a CTF to a Junior ISA in the future.
The Chancellor has been told that in order for savers to receive the same amount interest on their savings as was available a year ago, the cash ISA limit would have to be raised to in excess of �???�??�?�£8000.
