Credit crunch forces baby bonds into limelight

The financial website says recent events have shown that in order to get the cheapest mortgage deal a decent-sized deposit is essential, pointing out child trust funds could provide the answer. The UK Government introduced the products three years ago with the aim of ensuring every child has savings at the age of 18. Eligible children received an initial subscription from the government in the form of a voucher for at least £250, and the Government says the funds help children get into the habit of saving. Michelle Slade, an analyst at Moneyfacts, says: “The ‘bank of mum and dad’ has bec...