The UK's only specialist provider of long-term savings for children has stated that early take-up of the Child Trust Fund (CTF) accounts suggests that parents understand the importance of long-term savings for children.
The Children's Mutual said that the figures for uptake of CTF accounts to date had been very positive, contrary to suggestions that it had been slow.
Children's Mutual is the only provider in the UK specialising exclusively in long-term savings for children and has opened nearly 100,000 CTF accounts both directly and on behalf of its distribution partners, including Lloyds TSB, Mothercare and Boots, CIS and 18 building societies.
The fund welcomed the HMRC announcement that a third of Child Trust Fund vouchers have already been invested in the eight weeks since the scheme has gone live. With more than two thirds of the year to go, more than half a million parents have already opened CTF accounts.
David White, Children's Mutual chief executive, said: "Until this year only one in five parents were saving regularly for their children. As of now, a third of parents of children born from September 2002 have set up their CTF accounts. In any other market the speed at which the uptake of CTF is happening would be considered utterly phenomenal."
Mr White added that it was important that parents acted as soon as they could, particularly those intending to add to the account, so as not to miss out on potential returns.To read more about investments, click here.
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