Parents are being given too much time to cash in their Child Trust Fund (CTF) vouchers and consequently losing out on valuable interest payments, according to savings provider Family Investments.
In recent weeks, up to a quarter of CTF vouchers have expired and been automatically allocated by the government to stakeholder accounts, which may not be the best or most profitable use for the individuals concerned, the company said.
Miles Bingham, marketing director for Family Investments, said that these results confirmed what many industry observers had believed all along.
"Parents have too much time to make their choice," he claimed. "They receive their voucher, they put it away and they forget."
Although he could understand why - "parents who have a child are busy people" - Mr Bingham urged parents to make use of CTF vouchers in the way most suited to their own circumstances so they would not be losing out in the long run.To read more about investments for children, click here.
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