Half of eligible parents yet to open child trust fund
31/05/2005
At least 50 per cent of parents who have received vouchers for Child Trust Funds (CTF) are yet to open a CTF account for their children, according to Halifax.
Some two million children have been sent vouchers worth at least £250 in recent months, but at least half their parents have not followed up on the offer.
Halifax Financial Services has estimated that parents' inactivity in investing in CTFs is costing Britain's children a collective £1.8 million a month.
Ray Milne, managing director of Halifax Financial Services, said: "Almost £250 million in Child Trust Fund Vouchers could be lying around in people's homes waiting to be invested. It is a long-term investment but parents need to take immediate action to reap the rewards.
"If parents delay the opening of their CTF account by up to 12 months the government will open the CTF account with one of the registered default account providers.
"This will mean that the account will receive no interest in the first year."
In January the government began issuing vouchers for Child Trust Funds to children born after August 31st 2002.
Some two million children have been sent vouchers worth at least £250 in recent months, but at least half their parents have not followed up on the offer.
Halifax Financial Services has estimated that parents' inactivity in investing in CTFs is costing Britain's children a collective £1.8 million a month.
Ray Milne, managing director of Halifax Financial Services, said: "Almost £250 million in Child Trust Fund Vouchers could be lying around in people's homes waiting to be invested. It is a long-term investment but parents need to take immediate action to reap the rewards.
"If parents delay the opening of their CTF account by up to 12 months the government will open the CTF account with one of the registered default account providers.
"This will mean that the account will receive no interest in the first year."
In January the government began issuing vouchers for Child Trust Funds to children born after August 31st 2002.
