The Children's Mutual believe that Child Trust Funds are changing saving behaviour, with more parents saving more money towards their children's' future.
The company have seen an increase of 50% in the number of new parents saving for children than before child trust funds were introduced. The Children's Mutual have said that over 75% of the child trust funds opened so far have been stakeholder or equity based accounts.
There are still many parents who have not yet invested their voucher and have warned the one million parents who haven't done so that they could be missing out on as much as £1,500, just by delaying only 6 months.
Our view
People are changing their savings attitude, we believe, due to concerns of interest rates and the economy rather than their children.