National savings could get a boost from child trust funds (CTFs) by fostering a wider savings culture, research suggests.
Parents who have invested their CTF vouchers say that they are now more likely to start saving money than before they invested, Family Investments found.
Becoming familiar with the CTF system has encouraged almost 40 per cent of parents to consider saving money in other investments.
And parents saving money in a CTF seem to be making their money work for them, as six in ten parents plan to deposit money into the savings accounts at a regular basis, to see the initial investment grow.
Last month the government sent letters to the parents who have not yet invested their children's CTFs. Since then, take-up of savings accounts at Family Investments increased by nearly half.
If parents have still not invested their vouchers by 2006, the money will be invested on their behalf in a generic savings account.
But parents are being advised to maintain control of their investments and open a savings account now.
"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," warned John Reeve, chief executive of Family Investments.
National savings could be boosted by CTF
National savings could be boosted by CTF
Fri, 18 Nov 2005
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