CTF balance boost
The amount invested in cash child trust funds (CTFs) rose by £23m over the last three months, statistics from the Building Society Association (BSA) have shown.
The BSA’s research also showed a 32% increase on balances held in the same period last year. To date, 576,000 cash CTFs have been opened, with balances totalling £279m.
In quarter three of this year, 44,000 CTF accounts were opened at institutions offering both the cash and stakeholder option. Where they visited a provider offering both options during this period, 73% of parents opted for the cash CTF. This type now accounts for about 25% of all CTFs offered by parents.
Adrian Coles, director-general of the BSA, said: “It’s encouraging to see that deposits into cash CTFs in the three months to September were up by almost a third on the same period last year. This is not too surprising as deposits into all cash savings accounts picked up over this period.
“Now is a good time for parents and grandparents to think about contributing to their child’s CTF for Christmas. Just a little will help make a difference in years to come.”