Child Trust Fund boosts savings habit

01 September 2005
Parents are becoming more likely to help their children get a good start in life since the introduction of the Child Trust Fund (CTF), according to the Children's Mutual.

The savings bank has revealed that more than 50 per cent more parents are now saving for their children than before the CTF was launched.

Chief executive of the Children's Mutual, David White, also noted that the average amount of monthly top-ups has increased by 60 per cent to £24.

However, he urged the one million parents who have still not invested their CTF allowance not to lose out on the benefits the fund offers their children.

Mr White stated: "For parents intending to top up the CTF account with the maximum allowance of £100 a month, if they delay investing by even six months, their child could miss out on more than £1500 when they reach 18.

"As the annual allowance for topping up runs from the child's birthday rather than the financial year, it is important that the parents of children whose birthdays fall in the summer months start to invest now."

Mr White revealed that more than three-quarters of the accounts opened so far with the Children's Mutual were stakeholder and other equities-based accounts.

To read more about child investment, click here.

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