The majority of parents are opting for the cash version of the Child Trust Fund (CTF) rather than equities, according to new information from the Building Societies Association (BSA).
The latest monthly CTF update from the BSA reveals that more than 70 per cent of parents taking out a CTF with one of the eight providers are opting for cash products.
Of the 221,000 CTFs opened at providers which offered a choice between cash or equities products, 160,000 were cash-based accounts, whilst 61,000 equity CTF accounts were opened with the same providers.
Early indications suggest that those CTFs which have been opened mainly comprise only the £250 voucher given by the government.
"The first set of figures show that where parents have a choice between cash and equities at their chosen institution, the majority are clearly choosing the cash option," commented Adrian Coles, director general of the BSA.
"However, it is early days yet, with HM Customs & Revenue data showing that only 29 per cent of vouchers distributed had been deposited by 20 May 2005."
A total of 499,000 CTFs have so far been opened - meaning many parents eligible for vouchers are currently missing out on the opportunity to invest in their child's future. Click here to find out more about child investment.
© DeHavilland Information Services plc