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.
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