Nearly three quarters of all Child Trust Funds (CTFs) are proactively opened within a year of a child's birth, HM Revenue and Customs (HMRC) has revealed.
Welcoming this news, David White, chief executive of the CTF provider The Children's Mutual, was pleased to hear that nearly 75 per cent of parents choose to open an account before the Government does so on their behalf.
"Around half of our customers start saving on a monthly basis immediately," he said.
Meanwhile, the HMRC has also found that more than one in 10 parents with young children do not proactively open a CTF for their child.
However, analysis of the HMRC research by The Children's Mutual has found parents citied their lack of familiarity with financial matters as the reason for not opening an account and instead preferred to let the Government open one for them.
Of those who have not yet opened a CTF for their child, 27 per cent said they had not have time to think about it since their child was born.
Commenting, Mr White said: "Attention is often paid to the quarter of parents who do not open accounts, accusing them of not engaging with, or being interested in the CTF, but our research shows that parents are far more engaged than many would believe.
"The beauty of the CTF is that it allows for this, with the Government opening accounts on behalf of parents if they don't do it themselves, meaning that no child will miss out."
© Fair Investment Company Ltd