CTF cut off date looms

06 January 2006
Parents who received the government's £250 Child Trust Fund vouchers and have not yet invested them, are being encouraged to decide on a financial plan before the looming cut off date arrives.

According to F&C Asset Management those parents and guardians of children born on or after 1st September 2002 should decide on how to invest their child's money before the government decides for them.

Jason Hollands, head of Communications at F&C said: "Parents need to be aware that the vouchers have an expiry date printed on them which is 12 months from issue. The first wave of CTF vouchers were dated in January so the expiry dates are approaching."

Mr Hollands said unless the vouchers are invested now in a plan of choice, HM Revenue & Customs will randomly select a plan for parents.

"These will be from a pool of stakeholder plans, some of which carry higher charges than other options available in the wider market place," he explained.

Mr Hollands also reminded those parents who had already invested the vouchers to top up the accounts with further cash.

"You can invest up to an additional £1,200 each year in your child's account over and above the voucher. The start date for each annual allowance is your child's birthday except for this first year when it is the date the account was opened. So, if you were an early opener of a CTF and are able to top up then you should act soon," he said.

Click here for more information on child investment

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