Parents wishing to set up savings and investment accounts for their children have been told they still have plenty of options, despite the government's decision to scale back child trust funds (CTFs).
As part of a raft of measures to cut the deficit, the new government has said that no new vouchers will be issued for CTFs from the beginning of April, while the value of vouchers until then will be substantially reduced.
Jason Hollands, head of corporate affairs at F&C, accepted that it was disappointing that the government has signalled the end of CTFs, although he emphasised that there are other investment opportunities .
He said: "Irrespective of the future of CTFs, other savings options exist for parents such as buying investments through a bare trust.
"These carry certain advantages over CTFs in that there is no cap on the amount you can invest, there is more control over when the child gets access to the funds and they can be tax efficient ."
George Ladds, head of investments and pensions research at Fair Investment Company, has suggested that a new children's ISA would be one way of encouraging parents to set up investments for their children.
Investment opportunities still available for children
Investment opportunities still available for children
Tue, 25 May 2010
Recommended links
Investments and online shares portalInvestments review and enquiry form
Investments for children
Tax free savings for children
Savings accounts for children
Company dividend payments down
ETFs becoming more popular for investors
New investment trust welcomed by industry
| Stocks & Shares news |
|---|
| Investors happy to make own decisions but lack SIPP knowledge, survey finds - Tue, 05 Apr 2011 |
| Investors put off switching Isas by low rates and fear of mistakes - Thu, 31 Mar 2011 |
| Investors shunning banks when taking out an Isa - Tue, 22 Mar 2011 |
| More News |
