Child trust fund savings to merge with Junior Isas The best CTF is currently from Yorkshire Building Society and offers 3pc interest. In contrast, the best rate on a junior Isa is double that at 6pc, available from Halifax. Around 6.3 million children have approximately £5bn invested in a child trust funds. the Government has been under increasing pressure from industry and lobby groups to change its stance on CTF transfers. It was expected to relax the rules in this month's Autumn Statement, but Mr Osborne only confirmed that the Government would raise the Junior Isa and CTF annual subscription limits in line with the CPI measure of inflation. The 2014-15 limit has been increased from £3,720 to £3,840 for both products. Danny Cox, head of financial planning at Hargreaves Lansdown, said: "This is great news. The days of the child trust fund have been numbered since the launch of the Junior Isa. Child trust funds have been in terminal decline since 2011, seeing millions trapped in expensive products or suffering lower interest rates than their Junior Isa counterparts. This change will pave the way for a significant improvement in choice and outcomes for over six million children and ultimately lead to a full merger. Transfers should happen from April 2015 and in the meantime, parents and grandparents who are saving into child trust funds for their children or grandchildren should continue to do so. Child trust funds were introduced by Tony Blair's Labour administration, which gave parents of every child born in Britain from 2002 seed money of £250. Children were given another £250 when they turned seven, while some less well-off families received more. The schemes were replaced by Junior Isas in November 2011, which across the board offer better interest rates and a far wider selection of investments. They are an extension of the existing adult Isa system, offering children tax-free savings accounts. Grandparents, parents or other relatives can save or invest up to the annual limit - £3,720 in 2013/14 - each tax year. Guy Simmonds, head of product, protection and investments at Nationwide, said: "Whether it's tuition fees, first car, or help towards a deposit on a first home, parents, family and friends want a simple and preferably tax-efficient way to save for a child's future. This change is a welcome step to improve the simplicity and flexibility of accounts available. Sign up to our weekly alerts for all the latest personal finance news