CTFs still proving popular - Savings - News - Moneyfacts

News

CTFs still proving popular

CTFs still proving popular

Category: Savings

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

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 It is now over 6 months old so the content may be out of date.

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 Any products featured may be withdrawn by their provider or changed at any time.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

6 of the best monthly interest savings accounts

Monthly interest savings accounts pay interest on your savings each month – as opposed to yearly – and therefore allow you to take a regular income from your hard-earned cash.

Savings being used as a festive financial buffer

Good news from RCI Bank UK – its latest research shows that many of us are saving more than we were a year ago, but the question is, will you be dipping into that buffer to cover the cost of Christmas?

6 of the best easy access savings accounts

Easy-access savings accounts are as simple as they sound – they allow you to access your money whenever you need it, without having to give advance notice, and they also allow you to pay into them at any time. Here are six of the best.
 
Close