Dec 17 2007
The Family Investments company has outlined why it is convinced that stakeholder child trust fund (CTF) accounts can offer the best way to save for a young Briton's financial future.
According to Miles Bingham, a spokesperson for the organisation, all research into the topic suggests that when it comes to making long-term investments stakeholder savings vehicles offer greater returns than cash-based equivalents.
Moreover, Mr Bingham notes that when a government-initiated CTF goes unopened the account is automatically linked to stocks and shares, which he claims is further evidence of the reliability of shareholder CTFs.
"I'm very comfortable that cash savings have a role to play in saving for children, and I think they should be used more for educational cash," he said.
"But I don't believe that they're appropriate for 18 years of locked-away money."
Almost eight out of ten CTFs opened on behalf of children born in or before the tax-year 2005-06 were of the stakeholder variety, according to official data from HM Revenues & Customs.
