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Child Trust Fund openings dropping

28 April 2006
According to official statistics, 21,000 Child Trust Fund (CTF) accounts were opened in March, the fewest recorded monthly total since the scheme began.

Following the launch of the new CTF, the parents of each new child born in the UK are given a £250 voucher to be invested on behalf of their baby, which will accrue interest throughout their offspring's childhood and "mature" when the child turns 18.

The Building Societies Association (BSA) is urging parents to use their vouchers as soon as they can otherwise they are missing out on interest payments for each month that passes.

"There are still a third of parents who have not cashed their child trust fund voucher yet," said Rachel Le Brocq, spokesperson for BSA. "It is very disappointing."

"I think it is just apathy from parents," Ms Le Brocq charged. "They have the voucher but they are just sitting on it."

Every child born on September 1st 2002 or after is eligible for the CTF scheme, provided child benefit has been awarded for them, they are living in the UK and they are not subject to immigration controls.

To read more about investments for children, click here.

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