Parents who are eligible for the government's child trust fund scheme are missing out on opportunities to save because they have not invested their vouchers.
A study from Sainsbury’s Bank indicates that many parents with have either forgotten about or misplaced their trust fund vouchers, potentially missing out on funds worth up to £60 million.
According to the bank, mixed messages from different companies and a wealth of marketing campaigns may have clouded the issue.
Steven Baillie, Child Trust Fund manager with Sainsbury’s Bank explained: "The large selection of schemes to choose from has probably meant that some parents have delayed opening accounts for their children but the longer they wait the greater the loss of return.
"Indeed, as an example, by delaying opening a child trust fund for just one year and not making monthly contributions of £20 during that period, you are likely to reduce your returns by around £645 over 18 years."
Now the bank is urging parents to check their vouchers and ensure they take up the opportunity.To read more about investment, click here.
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