Aug 29 2007
Child trust funds (CTFs) are changing the savings habits of millions of consumers around the UK, according to one provider of such products.
As the fifth anniversary of the introduction of CTFs approaches, the Children's Mutual has highlighted the role of the funds in giving British children a brighter financial future.
Indeed, the financial services firm reports that 43 per cent of its customers can expect their child to have around £9,750 waiting in the CTF by the time they reach the age of 18 if their parents continue to save at their current rate.
"Life with children is a costly enterprise, and having a financial helping hand into adulthood is becoming more and more important," said David White, chief executive of the Children's Mutual.
"The key to the success of the CTF is topping up but it isn't just parents who can help - anyone can save into a CTF."
Earlier this week, the Tax Incentivised Savings Association welcomed the introduction of legislation that extends the reach of shari'a-compliant financial instruments to include CTFs.
