Building Societies Association: Top-up for future financial capability

16 January 2007
Topping up children's trust funds significantly boosts their value on maturation, the Building Societies Association (BSA) has urged parents, as Child Trust Fund (CTF) Week begins.

This week campaigns in local libraries and nurseries will aim to help eligible parents make informed decisions about which account provider to choose, as well as considering how and when to make contributions.

The BSA stresses that well-informed parents can maximise investment through top-ups and guarantee their child a strong start at 18.

"With no top-ups at all, the vouchers will be worth only £1,130 when the child reaches 18, but by topping up by as little as £20 a month it could be worth £8,420," commented Brian Morris, BSA head of savings policy.

"By contributing the maximum amount - £1,200 a year - a CTF could be worth £37,560; a great head start for any 18-year-old," he added.

Despite expressing satisfaction with take-up of the scheme to date, the Treasury is concerned that there is a correlation between financial exclusion and failure to sign up to the scheme.

To tackle these concerns, Mr Balls will today announce a countrywide initiative to improve financial inclusion for all ages.

For more information about child savings, click here.

track© Adfero Ltd