There is now £255 million lodged in child trust fund savings accounts , new data has revealed.
Figures from the Building Societies Association showed that more than one-quarter of £1 billion has been squirreled away by parents, relatives and friends of the family in a bid to create savings to boost youngsters' futures.
In total, some 544,000 cash child trust fund savings accounts have been opened, with 70 per cent of parents opting to take out a cash deal, rather than the stakeholder options available.
Over the second quarter of 2007, the total balance in the cash versions of the savings accounts soared by £22.2 million.
Adrian Coles, director general of the Building Societies Association, said that now would be the perfect time for parents to open a savings vehicle of this nature.
"The summer holidays are always a busy time for parents, but everyday the voucher is not invested, valuable interest will be lost and your child will be missing out," he explained.
Interest rate rises in recent months that have seen the base rate hit 5.75 per cent could also be good news for savers .
Child savings hit a quarter billion
Child savings hit a quarter billion
Thu, 16 Aug 2007
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