Q & A – Alternatives to CTF

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Written by Tim Barnes-Clay

Q&A Real problems, expert solutions

Q. I am expecting my second child in March and am wondering what the best alternative to Child Trust Funds (CTF) is now that these have ended?

A. The government has scrapped CTF’s for all babies born after 1 January 2011, but in the current climate it is more important than ever to open a savings account for your child. The majority of accounts designed for children offer excellent rates of interest and most of them are easy access, meaning you won’t face penalties or charges for withdrawing. If that sounds a little too tempting however, Junior ISAs are expected to lunch in the autumn and these 18-year accounts will not allow access to funds until your child becomes an adult. A limit to the annual investment is yet to be announced and there will be no contributions by the state, but the savings will be tax-free and any child born in 2011 onwards will be eligible for an account.

You can find out more about Junior ISAs at and