Parents are starting to put more money into their children’s nest eggs, according to new research.
The Building Societies Association (BSA) says that 31,000 new child trust funds (CTFs) were set up in September under the cash or stakeholders options.
The cash option was the more popular with nearly three quarters of parents selecting it as their preferred choice.
Over 259,000 cash CFTs have now been opened in the UK which hold a total of 78 million. In September, net receipts into cash CFTs reached 10.9 million in September.
Brian Morris, head of savings policy at the BSA, said: “Parents are now beginning to top up their childs CTF, which is good news.”
“The CTF is great way for parents and grandparents to invest in their childs future. Putting aside a little each month to go into the CTF could be used to fund part of a future deposit on a house,” he added.
Child trust funds have been set up to safeguard money for use the future to buy homes, pay for study, cover wedding costs or any other expensive outlay.
The government and financial service sector encourage people to put aside money while they can to avoid poverty at a later stage in life.
Related posts:
- More Parents opt for Cash CTFs More parents opted for cash investments when opening child trust...
- Parents Realising The Benefits of CTF Scheme A year after the government first launched Child Trust Fund...
- Parents Opt For Cash-Based CTFs More than 70 per cent of parents opted for a...
- Child Trust Fund Scheme Sees Increased Uptake The Child Trust Fund scheme is seeing increased success among...
- Saving for Your Child’s Future On 5 April 2005, the Government began to hand out...