January top for Child Trust Funds
Parents have put saving for children at the top of their new year resolution lists, according to Engage Mutual Assurance, a child trust fund (CTF) provider.
Engage is preparing for a boost in CTF account openings this month, after a bumper January last year. Over the past 12 months, 12% of CTF openings with the provider happened in January, well above the monthly average for the rest of the year. The number of accounts opened almost halved in November 2007, dipping to a low for the year of 6%.
In general, 2007 saw an increase of 40% on 2006 account opening figures and the most popular month for one-off payments to an Engage CTF was March.
Karl Elliott, spokesperson for Engage Mutual, said: “New Year is a time when many of us resolve to sort out our finances. As last year’s experience in our CTF data shows, many parents will also open a CTF in January.
“However, we really encourage parents to invest little and often for their child for the long term, not just at the beginning of the year. By investing just £10 a month into an Engage CTF on top of the government’s contribution of £250 at birth and again at age seven, the child could get back £4,130 when they reach 18 years old.”