People are still failing to cash Child Trust Fund vouchers despite previous warnings from experts, according to research from Nationwide.
The bank says that over a million children are missing out on potential savings because almost half of the two million savings vouchers issued by government have not been invested.
"It is disappointing that nearly one million Child Trust Fund vouchers remain uninvested as children are losing out on either potential stock market growth or interest on their account," said Stuart Bernau, executive director at Nationwide.
"We urge parents to act now as the sooner the account is open, the sooner parents, friends and family can begin to make additional payments," he added.
Nationwide, which offers cash and stakeholder equity Child Trust Funds, has processed only 200,000 vouchers so far.
The bank said that the majority of parents who invested the vouchers chose cash funds as opposed to equity funds.
The British Building Societies Association (BSA) revealed earlier this week that parents invested £10.9 million in child trust fund vouchers in September.To read more about Child Savings, click here.
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