CTFs still proving popular - Savings - News - Moneyfacts


Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

CTFs still proving popular

CTFs still proving popular

Category: Savings

Updated: 19/03/2009
First Published: 19/03/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Parents are still investing in Child Trust Funds (CTFs) despite the deepening recession, the Treasury has revealed.

Parents have one year in which to invest the initial £250 CTF voucher they receive following the birth of a child into either cash or stocks and shares. If no action is taken, the Government places the money in an account on behalf of the child.

Encouragingly, latest figures reveal a slight rise over the last quarter from 72% to 73% in the number of accounts being opened by parents in the first year.

6 April 2009 will mark the fourth anniversary of the launch of the CTF , with more than four million children now having such an account.

According to The Children's Mutual, the average monthly direct debit received into their CTF is £24, an amount which if paid monthly throughout the life of the fund, could result in a lump sum of £9,750 upon maturity on the child's 18th birthday.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Just 44 savings accounts beat inflation

Inflation recorded another large jump during December, and predictably, this has had a devastating impact on the number of savings accounts that beat it, so much so that you’ll need to lock your money away if you want an inflation-beating return.

Just 47% have money in a savings account

We’re often told of the importance of saving, yet unfortunately, the message doesn’t always get through. Indeed, research shows that just 47% of those surveyed have money in a savings account, and 17% have no savings or investment whatsoever.

How much will you save this year?

Many of us have set savings goals for the year ahead, and planning to budget better and save more will be at the top of many financial resolution lists. But how much are you hoping to squirrel away? Encouragingly, many people have impressive targets.