Not all child trust funds (CTFs) are equal and should be reviewed, website MoneyExpert.com has suggested.
Research by the website has found that a savings price war means that some CTFs offer a much better rate than others – with the gap between best and worst getting wider.
This currently stands at 2.75 per cent, meaning a family that invested the full £1,200 each year could lose as much as £12,164 in unpaid interest, the website said.
Chief Executive Sean Gardner said: "Many parents are planning to build up a healthy savings pot for their children and CTFs are a great way to do that.
"However there are some poor deals out there and parents should move – or risk a nasty conversation when their child turns 18."
John Brasington, chairman of Tisa, the trade body for CTFs and tax incentivised savings, said that he was delighted the government had announced it intended to improve and develop CTFs.




