A recent announcement by the Children’s Mutual has stated that the friendly society is planning to move all of it’s savings into it’s Canadian owned rival Forester Life.

This will result in almost 1 million Child Trust Fund holders having their funds transferred across to the rival society without having a say on the matter.

The Children's MutualIt has been rumoured that the Children’s Mutual have been looking for a buyer for quite some time now. It is believed that the cost of running their CTF accounts is unmanageable and the scrapping of the child trust fund by the government compounded their misery as this was their main source of new business.

Formerly known as ‘Tunbridge Wells Equitable Friendly Society’, The Children’s Mutual Society has said to have ‘entered into exclusive negotiations’ with it’s rival Forester Life.

Currently, more than 927,000 customers hold a child trust fund with the society, a majority of them by taking advantage of the government vouchers but there are fears that CTF accounts will perform poorly from now on due to investment providers concentrating on the new Junior ISA Accounts which where launched back in November 2011.

Many people now believe that customers should be able to transfer their Child Trust Fund to a Junior ISA and take advantage of the larger investment options potentially open to them and this news will only strengthen the call of many people and organisations.

However, Forester Life have announced that the takeover should be beneficial for it’s new members as they hope to drive down the cost of managing the funds by economies of scale and it is also worth noting that the money already set aside my the Children’s Mutual for managing the funds would be released to help boost the final or terminal bonus of the Child Trust Fund.

How ever you look at it, surely the coalition government must look more closely at the possibility of allowing CTF holders to transfer child trust fund to a Children’s ISA?

Please note that this article was provided by www.JuniorISAs.org

Junior ISA Update

Since the Junior ISA was officially launched in November 2011 we have seen a steady flow of providers offering their own version of the investment. It seems that the stocks and shares Junior ISA is a much more popular product than its cash version and this is reflected in the amount of providers offering a stocks and shares version when compared to the amount of providers offering a cash version.

The stand out providers are ‘The Children’s ISA Ltd’, ‘Family Investments’, ‘TaxFreeJuniorISA.co.uk’, ‘The Children’s Mutual’, ‘Jump’ and ‘Scottish Friendly’.
Junior ISA

A lot of providers offer very similar accounts but your money goes into different fund(s) dependent upon the provider. The government have also confirmed that you cannot transfer a child trust fund to junior isa which many parents feel is unfair as they feel that their children are now stuck in an unsupported and inferior investment.

There are also some Junior ISA comparison sites cropping up with www.juniorisaproviders.org being the most notable one. Here you can compare many different Junior ISAs from a wide range of the UKs leading providers.

Tax Free Junior ISA

The UK coalition government has annouced plans to introduce a new ISA for children know as a ‘Junior ISA’.

This will replace the ‘Child Trust Fund’ and is to encourage parents to help their children save for their future.
Parents will be able to pay in a capped amount each year which can either be cash, stocks or shares just like with a normal adult ISA (Individual Savings Account) and the child will not be able to receive the funds until they reach adulthood.

It is predicted that education costs such as going to university and also house prices are to continue rising so it is important to help your child to have some savings which can then go towards their university fee’s or help them onto the property ladder.

Unlike the Child Trust Fund, the government will not be making any contributions towards any Junior ISA accounts which has resulted in complaints from many people.
It is believed that only weather families will be able to afford it whilst lower income families will be excluded.

The government is expecting to save around half a billion pounds by scrapping the Child Trust Fund in favour of a tax free junior isa