Building society sees further savings opportunity
22/09/2006
Nationwide Building Society is calling on the government to build on the "great success" of the Child Trust Funds (CTF).
Stuart Bernau, executive director at the building society, has urged leaders to "extend tax-free initiatives" for the children who are currently ineligible.
Welcoming, a new report from HM Revenue & Customs (HMRC), which suggests that CTFs are changing the nation's saving habits for the better, Nationwide sees an opportunity to develop new incentives to encourage further uptake.
The building society suggests that there is now a chance to offer a savings incentive for children who do not qualify for CTFs.
"While we understand that the government cannot extend the scheme to all children, it would be a very welcome move if it could introduce initiatives that encourage older children to save," said Mr Bernau.
"Parents should also consider topping up their child's fund with extra savings as, in our experience, most do not and are missing out on the chance to accumulate additional savings that are free from tax."
Savings specialists, The Children's Mutual, also welcomes the new CTF report.
The organisation indicates that since CTFs were introduced, the amount of families saving for their children has increased from 20 per cent to 44 per cent.
Furthermore, the monthly direct debit sum used to top-up CTFs has increased by 50 per cent to an average of £23.
Stuart Bernau, executive director at the building society, has urged leaders to "extend tax-free initiatives" for the children who are currently ineligible.
Welcoming, a new report from HM Revenue & Customs (HMRC), which suggests that CTFs are changing the nation's saving habits for the better, Nationwide sees an opportunity to develop new incentives to encourage further uptake.
The building society suggests that there is now a chance to offer a savings incentive for children who do not qualify for CTFs.
"While we understand that the government cannot extend the scheme to all children, it would be a very welcome move if it could introduce initiatives that encourage older children to save," said Mr Bernau.
"Parents should also consider topping up their child's fund with extra savings as, in our experience, most do not and are missing out on the chance to accumulate additional savings that are free from tax."
Savings specialists, The Children's Mutual, also welcomes the new CTF report.
The organisation indicates that since CTFs were introduced, the amount of families saving for their children has increased from 20 per cent to 44 per cent.
Furthermore, the monthly direct debit sum used to top-up CTFs has increased by 50 per cent to an average of £23.
