Child Trust Funds top £200m mark
According to figures released by the Building Societies Association (BSA), 42,000 Child Trust Funds (CTFs) were opened in the last quarter of 2006 by providers that offer the cash and stakeholder option of the saving and investment scheme.
Money put into the schemes came to £19.5m in the period and to date 477,000 cash CTFs have been opened, with £207m in total balances, a significant saving and investment on behalf of children born since September 2002 and who are each presented with a £250 voucher by the Government to get them started.
BSA director-general Adrian Coles said: “Net receipts into cash CTFs for the last quarter of 2006 improved from the summer. December, traditionally a quieter period in the savings market, was an encouraging month with the highest net receipts since April. Total balances in cash CTFs have now exceeded the £200m mark.”
He continued: “At current rates, a cash CTF, topped up with the maximum amount of £1,200 every year would be worth £37,560 at aged 18. For some parents, the simplicity, security and relatively low risk associated with cash savings is important.
“Others want to know the money they are saving for their child is not invested in stocks and shares associated with unethical products or practices, as this is a strong principle of saving and investment for many people.”