Parents should look to regularly top up the child trust fund accounts for which they are responsible if children are to benefit from significant savings when they reach 18 years old, it has been claimed.
Under the child trust fund savings account scheme, HM Revenue & Customs gives a savings voucher to parents of all children born after September 1st 2002.
Parents are then encouraged to give this voucher to a financial services provider to create an investment-based or cash-based savings account for their child, which can be accessed when the account matures on their 18th birthday.
However, Jason Hollands, director and head of communications at F&C Investments, has warned family members that the child's savings will be far more significant if additional money is frequently added.
"The real success of the CTF [child trust fund] must be the extent to which those accounts are added to, whether by parents, grandparents or family friends," he said.
"This can be done on a regular basis through a direct debit or by occasional lump sums."
All child trust fund accounts can receive a maximum of £1,200 investment between the child's birthdays each year.
Parents should try to top-up child trust fund savings accounts, expert suggests
Parents should try to top-up child trust fund savings accounts, expert suggests
Wed, 10 Jan 2007
Recommended links
Complete guide to savings accountsCompare savings providers
Savings quick enquiry form
Compare child trust funds
Britannia claims child savings dominance
MPs back children's savings, study shows
<% Randomize: ord=int(rnd*1000000000) %>
 %>?)
| savings news |
|---|
| People looking for safer savings accounts, study shows - Fri, 10 Oct 2008 |
| Football savings plan suggested - Wed, 08 Oct 2008 |
| Building societies offer most consistent savings accounts, figures show - Mon, 06 Oct 2008 |
| More News |
