The parents of the six million youngsters with money in a child trust fund should dig out their paperwork after the government announced a major rule change. Ministers have bowed to pressure to allow savings held in a CTF to be transferred to a Junior Isa . The change doesn't take effect until April 2015 , but there is nothing to stop parents from checking now how their child's fund is doing, and planning ahead to move the money if the interest rate or performance is below par, says Sarah Pennells , who runs the SavvyWoman.co.uk website. If a youngster was born between 1 September 2002 and 2 January 2011 , they are a "child trust fund baby". Junior Isas were launched in late 2011 and to date, around 300,000 have been taken out. Any UK child under 18 can have one, if they don't have a CTF. The Treasury says allowing money to be switched means youngsters "may be able to get better returns on their investment, pay lower charges and have more choice of products". One of the best-paying cash CTFs is offered by Yorkshire building society; it pays 3% tax-free, which includes a 0.7% bonus for 12 months, and allows transfers in. However, Junior Isas often have better rates. The Halifax offers an impressive 6% on its Junior Isa , provided mum or dad (or the "adult registered contact") holds a Halifax cash Isa with at least pounds 1 in it.
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