Aug 29 2006
Britannia Building Society has increased the interest rate on its tax-free Child Trust Funds (CTFs) to 6.25 per cent as of September 2nd this year.
The company has noted that September is the peak birth period in the UK and has marked out the month as a key time for investment in CTFs.
Nick Pagon, savings product manager at Britannia Building Society, has recommended that parents take an active role in the investment of CTFs.
"Our non-stakeholder cash CTF has an excellent variable rate of interest, is tax free and there is no risk to the child's savings," he said.
"It's crucial parents or guardians invest their vouchers to turn them in to savings for their kids, and if they don't take any action, the government will invest it for them, thereby effectively removing their choice of financial provider," he added.
When a child is born the government gives parents a £250 investment voucher to be invested in a CTF, hoping that it will encourage them and other relatives to add to the savings fund which cannot be spent till the child reaches 18.
For more information on CTFs available, please click on our free brochures page.
