Nationwide: Parents getting behind CTFs

24 August 2006
According to Nationwide Building Society, one of the UK's leading institutions in the Child Trust Fund (CTF) market, parents are "getting behind" the initiative.

Despite statistics from the Building Societies Association in July showing that relatively few new accounts were opened last month when compared to spring activity, Nationwide asserts that its CTF portfolio is growing steadily.

"We are seeing that parents are getting behind this and are making top-ups on a regular basis," said Sue Knight, a spokesperson for the building society.

"We are one of only four high street organisations that offer both cash and equity Child Trust Funds," she continued. "We hold 17 per cent of the CTF market."

Ms Knight also said that as well as attracting parents to their institution with enticing rates for their adult-arranged accounts, Nationwide was also near the head of the market for children's investments and bank accounts.

"We have a good share of the children's savings market," she said. "One in six UK children's accounts is with Nationwide."

Nationwide encourages parents to make regular contributions to their children's savings accounts, particularly CTFs. When top-up contributions exceed £240 in a year, the society offers one per cent extra interest for that 12-month period.

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