Child Trust Funds vary, with different interest rates being offered. The amount of money your child receives at the age of 18 could vary greatly if your fund is earning 1% less than a similar fund from another provider. Shop around to compare them.
Provider The Children’s Mutual has an informative website that includes a calculator, where you can work out how the fund will grow.
Supermarkets like ASDA and Tesco offer child trust funds, but these are backed by other institutions. ASDA’s is provided by The Children’s Mutual, but if you buy via ASDA there are other benefits, like a shopping voucher. Tesco’s fund is provided by Royal Bank of Scotland, which may make investors nervous considering recent bank losses. The Children’s Mutual also has relationships with Boots, Mothercare and the Royal College of Midwives.
Family Investments is another child trust fund provider but they also offer an “ethical” fund. The money is invested ethically and you can view progress of the fund online.
You can also talk direct to your bank or building society. Yorkshire Building Society claims to be competitive when it comes to the Child Trust Fund interest rate.