Oct 23 2006
Cash child trust funds (CTFs) have remained popular, according to the Building Society Association (BSA).
It reports that, given the choice, 71 per cent of parents chose a cash CTF in September, with net receipts of the product reaching £6.3 million in that month.
Total statistics show that cash CTFs currently account for 24 per cent of all that have been opened.
Brian Morris, head of savings policy at the BSA, said: "These findings indicated that demand for simple, safer CTF products such as the cash CTF, is exceeding supply.
"The BSA would like the government to relax the current rules to make it easier for building societies - and others - to offer cash CTFs and meet this demand."
He added that some parents were unaware of the nature of products they had taken, specifically the level of risk to capital of the product.
Family Investments recently claimed that 27 per cent of parents were unable to decide whether or not to invest in cash or shares based CTFs - resulting in the decision being made by the HM Revenue and Customs.
For information from providers of cash and stakeholder CTFs, please click on our free brochures page.
