Parents who invest their child trust fund savings account vouchers in equities are seeing better returns on investment than those who focus on cash accounts, it has been claimed.
Financial services provider Sainsbury's Bank has made the claim after interrogating data published earlier this month by online banking website Moneyfacts.co.uk.
According to its analysis, parents who have invested in the cash-based format of the savings account have seen returns on investment of 5.45 per cent over the past 12 months, when introductory bonuses are excluded.
By way of comparison, those who use stakeholder savings accounts have seen an average growth in value of 8.92 per cent.
"In choosing a child trust fund, parents need to remember that they are saving for the long term, some 18 years," commented Peter Wood, head of savings at Sainsbury's Bank.
"They should note that over the long term, equities have consistently outperformed cash."
This week has been designated Child Trust Fund Week by the government.
Running between January 15th and 20th 2007, the week is intended to raise awareness of the savings account format and encourage family members to regularly top up the accounts of newborn children.
Equities performing better than cash child trust funds, claims financing analyst
Equities performing better than cash child trust funds, claims financing analyst
Tue, 16 Jan 2007
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