Active participation with the child trust fund savings account scheme is proportionally weaker among low-income families, it has been claimed.
Running between January 15th and 20th 2007, this week has been officially set aside as Child Trust Fund Week by the government in a bid to raise awareness of savings options.
There are three main types of child trust fund savings account - two of these involve investing in equities while the third format involves gaining interest along the lines of a conventional cash savings system.
If parents do not take action themselves to choose an account type themselves, then the government will step in to invest the savings voucher for them.
Citing official government statistics, Miles Bingham, spokesperson for savings account provider Family Investments, indicated that government intervention is more prevalent among parents with poorer backgrounds.
"Only 75 per cent of parents are actually making the choice themselves and this does concern us because clearly there is a relationship between the one in four who aren't taking out the account and people from poorer backgrounds," he said.
Parents with a child trust fund savings account can opt to top up the voucher with up to £12,000 of investments each year, which might be paid in by parents, grandparents or friends of the family.
Savings account participation lower among poorer social groups, analyst claims
Savings account participation lower among poorer social groups, analyst claims
Wed, 17 Jan 2007
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