Oct 26 2006
Britannia Building Society has announced a rise in parents taking out its non-stakeholder child trust funds (CTFs).
Since the building society increased its rates on the funds last month it has seen a 20 per cent increase in uptake in the product.
In September, the company's CTFs had their interest rate increased to 6.25 per cent gross.
Nick Pagon, savings marketing manager at Britannia Building Society, said: "It's crucial parents or guardians invest their vouchers to turn them into savings for their kids.
"If they don't take any action, they will lose interest and the government will invest it for them, thereby effectively removing their choice of financial provider."
He added that it was positive to observe parents being proactive in taking out CTFs to provide savings for children in the future.
Earlier this week, the Building Society Association announced that total net receipts of £6.3 million were paid into cash CTFs in September.
For information on cash CTFs offered by Britannia Building Society, please click on our free brochures page.
