Britannia launches attractive child account rates

Those parents investing in Child Trust Funds (CTFs) may be encouraged by Britannia’s decision to increase the interest rate on such accounts.

As from September 2nd, interest rates on the group’s tax-free fund will be increased to 6.25 per cent gross.

Britannia has raised its interest rates on both its stakeholder and non-stakeholder CTFs in the knowledge that September marks the start of the peak birth rate period for England and Wales.

Nick Pagon, savings product manager at Britannia, said: “It’s crucial parents or guardians invest their vouchers to turn them in to savings for their kids, and if they don’t take any action, the government will invest it for them, thereby effectively removing their choice of financial provider.”

CTFs were introduced by the government in April 2005, giving parents £250 to invest on behalf of their child.