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Good news for kids as CTF contributions rise
There was good news for parents and for their children this month as new figures revealed that the amounts being added to child trust funds (CTFs) across the UK are increasing.
In fact, the latest data from the Tax Incentivised Savings Association (Tisa) prompted Tony Vine-Lott, director general of the organisation, to assert that the "news about parental involvement in CTF seems to be getting better and better".
More and more parents and other family members are adding to CTFs via either lump sum contributions or through direct debit payments, according to figures collected and released by Tisa and welcomed by all those aiming to encourage child saving schemes in the UK.
However, there were warnings that many thousands of British consumers are not making the most of their investments.
Sainsbury's Bank research revealed that a total of £13.6 billion is resting in current accounts across the country, despite the relatively low-interest rates and the fact that this cash could be going towards securing the financial future of the UK's young people.
And Linda McBain, head of banking at the Investec Private Bank, urged consumers to be proactive about their savings, saying: "Don't allow apathy to creep in."
Furthermore, experts at Bradford & Bingley have claimed that there are people throughout Britain who mistakenly believe inheritance tax is not an issue that affects them and a study by Engage Mutual suggested that young Britons are considerably more likely to splash the cash than their more elderly counterparts.
Meanwhile, in an effort to encourage parents to take up its CTF offerings, Britannia has launched a scheme that will see a tree planted somewhere in the UK for every child savings account opened. The idea is to combine environmental efforts with savvy financial decisions, the building society explains.
And in what could be good news for savers throughout the UK, the Bank of England opted to increase the base rate of interest, which is likely to mean greater returns on savings investments.
The positive environment for savers in the wake of five interest rate rises within in the past 12 months, might also explain why HM Revenue & Customs reported in July that the most recent tax year saw record investments into individual savings accounts, (Isas).
Reflecting on a good month for CTFs and a record year for Isas, Mr Vine-Lott from Tisa made clear recently that "tax incentivised savings remain hugely popular with millions of people".
