Child trust fund numbers plateau
The number of child trust fund accounts being opened each month has hit a plateau, with 310,000 opened to date and 27,000 opened in December.
The cash accounts opened so far hold a total of nearly £99m in balances, with the amount put into cash child trust funds in December hitting a total of £7.9m. Where a choice was offered, 67% of parents opted for the cash option in December, according to a poll of the providers of this type of child trust fund.
Brian Morris, head of savings policy at the Building Societies Association – which carried out the survey – said: “December’s cash child trust fund figures show a slight rise in net receipts compared to both October and November. However, we are not seeing any sign of a big pick-up in sales and the number of accounts being opened each month appears to be hitting a plateau.
“With January marking a year since the first vouchers were issued, we hope to see an increase in next month’s figures, with parents investing their voucher before they lose their initial choice of provider. Parents who have been sitting on their voucher for the past year have already missed out on 12 months of interest for their child, so we urge them to invest now.”