A leading Child Trust Fund (CTF) provider, Family Investments, has predicted that the scheme could net an £87 million windfall from lump-sum top ups alone.
The first generation of children who hold a CTF could cash in their savings holdings when they mature at the age of 18 and pocket a substantial amount of money, even before the original voucher and regular payments are taken into account.
According to Family, around £37.5 million has already been invested through lump sum top ups since the scheme began in 2002.
The company also asserts that a CTF benefiting from five single payments of £175 in years one to five will be worth almost three times as much as a voucher-only account at the age of 18.
"Single payments are a flexible way to top up CTF accounts and are an easy way for family and friends to help parents save for their children, particularly during the early years when money can be tight for new families," said John Reeve, chief executive of Family Investments.
"Making top ups in those early years helps get the CTF off to a good start and ensures that the child benefits from a long period of growth when they turn eighteen," he added, noting that many parents and grandparents make the one-off contributions as a birthday or Christmas present when the child is too young to enjoy an actual gift.To read more about investments, click here.
© Adfero Ltd