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'Grey' boost for CTFs

24 July 2006
According to the findings of engage Mutual Assurance, grandparents are more likely to make additional one-off payments in Child Trust Funds (CTFs) than parents.

The survey showed that seven per cent of grandparents contributed additional funds to the CTFs of their grandchildren, as opposed to six per cent of parents who said they would be adding to the initial government voucher.

Up to 14 per cent of respondents said that grandparents were planning to add to the savings account in the future and five per cent of parents said their mother and father would make regular contributions to the fund.

"These figures suggest that over 200,000 grandparents could be planning to add to a CTF, which at this early stage is great news," commented Karl Elliott, marketing director at engage.

"With the average payment standing at £19.80 per month, this could equate to an additional £3.96 million of potential investment nationally - and that's among parents who haven't asked immediate family members and friends for top ups."

Mr Elliot said that if parents were generally more comfortable discussing any potential savings grandparents could make on their child's behalf, investment in CTFs could grow even further.

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