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Saving 'made fairer' for millions of children

Parents are now able to swap existing Child Trust Funds (CTFs) for Junior ISAs.

Young savers may soon be able to get a better deal, thanks to changes introduced this week.

The CTF scheme was introduced to encourage children to get into the habit of saving money.

However, in recent years it is thought banks have focused their more attractive deals on Junior ISAs.

Both accounts are similar in that the money is only accessible to a child when he or she reaches adulthood.

Now, the Government has said that the 6.3 million children who were born between September 2002 and January 2011 and have a CTF will be able to access Junior ISAs.

It is thought that collectively there is £4.8 billion in CTFs which could now potentially be transferred to Junior ISAs.

Parents will be given the option of transferring to a Junior ISA from a CTF, but they would not be allowed to keep both accounts running at the same time because of the tax advantages of the products.

The maximum annual figure which can be deposited in a Junior ISA will be £4,080 for the 2015/16 tax year.

Copyright Press Association 2015

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