Cash accounts are unlikely to offer the same returns as a stakeholder child trust fund, according to one expert.
Miles Bingham, marketing director for Family Investments, said that over an 18-year period, an investor choosing to put their money in stocks and shares is going to "outperform" someone who has invested cash .
However, cash savings do have a "role to play" particularly as a way of educating children as they grow up, Mr Bingham said.
"But I don't believe that they're appropriate for 18 years of locked-away money," he commented.
Parents are unlikely to "do their child a favour by being locked into cash for 18 years", he Mr Bingham added.
Child trust funds were introduced by the government to provide children with long-term savings .
All children born after September 1st 2002 are eligible to receive a £250 voucher from the government to take out a trust fund.
Cash accounts 'not appropriate' for long-term savings
Cash accounts 'not appropriate' for long-term savings
Tue, 18 Dec 2007
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