Recent figures from the Building Societies Association have shown that 64% less cash and stakeholder child trust fund accounts were opened in May this year, compared to the same time last year.
Of these accounts, 71% chose the cash child trust fund account, which accounts for 24% of the whole child trust fund market.
The Building Societies Association believe that parental indifference caused by poor promotion by the government is the reason why cash accounts have experienced a downturn.
Our view
People are becoming aware of other types of Child Trust Accounts such as those invested in the stocks and shares market, greater risk but with potential for larger long term growth.