National Savings & Investments has not been included as a child trust fund provider because of their policy of not allowing riskier equity products when saving for children. The Treasury Select Committee questioned the child trust fund scheme’s requirement of an equity element.
National Savings & Investments was mentioned as a viable option that has established relationships with lower income and low-risk families that could help the fund take-up. The chairman of the Treasury Select Committee has asked for a review of the decision.
Our view
A real blow for National Savings who have always played a major role in children's savings.