Direct debits being set up to pay regular top-up payments into Child Trust Fund (CTF) accounts hit record levels during August, said children's savings specialist The Children's Mutual.
Half of all new CTF accounts are now being opened along with a direct debit being set up by parents or grandparents alongside it to increase the amount of the child's savings.
The statistic makes good reading for the government as it is in stark contrast to comparable figures from 2004, when fewer than one in five parents were saving regularly on their children's behalf.
"We believe that every child deserves a financial springboard into adult life, and the fact that so many youngsters are having their CTF accounts topped up is fantastic news, particularly when you consider it was launched just 18 months ago," said David White, The Children's Mutual chief executive.
"Not only did we see a record level of parents topping up CTF accounts, it was also a great month for us for account openings," he continued.
"While in a pre-CTF world August was a traditionally quiet month, the CTF has changed all that. Parents seem keen to get their vouchers invested quickly and start saving regularly for their children. In a nutshell, the CTF is changing the nation's savings habits."To read more about children's investments, click here.
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