Child Trust Funds CTF Working

Published / Last Updated on 23/10/2007

Since the introduction of child trust funds, almost 75 per cent of new parents are opening accounts, says David white chief executive of Children’s Mutual.  

The average amount that parents are saving into a child trust fund is £24 per month and if they continue with this, at age 18 the child could have a lump sum of £9,750.  Figures also show that grandparents are also contributing to the child trust funds.  

Mr White also commented that the children’s mutual is passionate about supporting financial education and that we have 13 years to sort this education out.  Foreign & Colonial has reported that their trust-based child trust funds have outperformed their stakeholder plans.  

Our view

The fact remains that 25% of new parents have not opened an account.  This is free money, you need to open an account when you receive your voucher.  Child trusts are tax efficient, have low charges and are a great way to start saving for your children.

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