PIMA: 1 in 3 making additional CTF contributions
22/09/2006
According to the PEP and ISA Managers' Association (PIMA), nearly 30 per cent of parents, relatives and friends are providing for the future of a child through voluntary additional contributions to a child trust fund (CTF).
Since the investment scheme's launch just over a year ago, CTFs now account for over £100 million-worth of investment through the voluntary additions, on top of the free voucher.
"These results are extremely encouraging," said Tony Vine-Lott, PIMA's director general.
"Parents are taking the right steps to save for their children's future," Mr Vine-Lott continued, saying that despite it being a difficult time for families' living cost affordability the investment levels are "tremendous".
Parents are automatically given a £250 voucher to invest in a savings account for their new-born child, which enables that child to benefit from up to £1,200 of tax-free savings each year. The investment then matures when the child reaches the age of 18.
To view children's investment options, click here.
© Adfero Ltd
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