CTFs attracting more than £5 million a week - Savings - News - Moneyfacts

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CTFs attracting more than £5 million a week

CTFs attracting more than £5 million a week

Category: Savings

Updated: 01/04/2010
First Published: 01/04/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Child Trust Funds (CTFs) are being topped up to the tune of more than £5 million a week by almost 1.4 million parents, family and friends.

The Children's Mutual said the figures give a clear indication that the UK's savings habits have improved in the near five years since CTFs were launched.

Currently, CTFs are attracting lump sum payments totalling £22 million a month.

Prior to the launch in April 2005, less than one in five parents were saving for their children's future. That has grown considerably to three in five parents since the introduction of CTFs.

The proportion of parents proactively opening their child's CTF is significantly higher than the engagement rate for ISAs and pensions.

And with the average direct debit payment of £24 made by parents into CTFs, children can expect a lump sum of over £9,700 upon maturity.

"Given recent economic problems, it is essential that the UK reignites its savings culture," said David White, chief executive of the Children's Mutual.

"In five short years there has been a 200 per cent increase in the number of people saving for their children in the long term and the CTF has been the catalyst."

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