Around a third of UK parents would be encouraged to open a child trust fund savings account if they were able to do so online, according to a survey from engage Mutual Assurance.
Under the present system, parents receive a voucher from the government when claiming child benefit, which they must forward on to the chosen child trust fund provider in order to open the savings accounts.
Thus far, 2.3 million vouchers have been issued, of which 1.48 million have been used to open savings accounts.
Karl Elliott, marketing director at engage, which states that it is one of the leading online Child Trust Fund providers, states that a key aim of the child trust fund savings accounts is to help busy parents open an account as soon as possible and encourage an early regular savings habit.
"This means removing barriers and making the process as simple as possible," he said.
"We know from experience that customers often lose, damage or misplace child trust fund vouchers, leading to a delay in opening their accounts," he added.
Mr Elliott concluded that the "single most effective step" that could be taken to improve early uptake for an online processing system to be established.
The Children's Mutual recently stated that child trust fund savings accounts have the potential to change the "nation's savings habits".
Parents want online savings accounts, study shows
Parents want online savings accounts, study shows
Wed, 12 Jul 2006
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