Take-up of child trust funds (CTFs) slowed down last month, according to recent figures.
The Building Societies Association (BSA) found that October had the lowest number of parents opening new cash-based savings accounts to start saving money on behalf of their children.
A total of 26,000 new savings accounts were opened last month by parents who want to start saving money on behalf of their kids, according to providers of cash and stakeholder savings accounts.
Almost 273,000 parents have now invested their CTF vouchers in order to start saving money on behalf of their children.
The BSA said it was disappointed with the numbers of parents investing their vouchers in cash-based savings accounts, as a large number of vouchers are yet to be invested.
"Many parents have still not invested their CTF voucher and their children are missing out as a result," commented the head of savings policy at the BSA, Brian Morris.
The BSA has published a leaflet to explain investment of CTF vouchers to parents. Last month, letters were sent by the government to parents, urging them to start saving money on behalf of their children.
By 2006, unused vouchers will be invested in generic savings accounts on behalf of parents.
However, they are being urged to take action now and open a savings account in order to remain in control of their finances.
The warning came from John Reeve, chief executive of Family Investments, who said: "Time is now running out as we approach the end of the year and we would urge parents to take action before their choice is taken away and accounts are set up on their behalf."
BSA: Saving money in CTFs down
BSA: Saving money in CTFs down
Wed, 23 Nov 2005
Recommended links
National savings could be boosted by Child Trust Fund (CTF)Child Trust Funds explained
Investments for children
Compare offers for Child Trust Funds
<% Randomize: ord=int(rnd*1000000000) %>
 %>?)
| savings news |
|---|
| Skipton launches new savings bonds - Wed, 19 Nov 2008 |
| Take out a fixed savings account now, expert urges - Mon, 17 Nov 2008 |
| Credit unions offer good savings accounts, CEO claims - Fri, 14 Nov 2008 |
| More News |
