Feb 6 2008
Engage Mutual Assurance has suggested that the introduction of a £5 minimum contribution rate on its child trust fund (CTF) accounts has boosted the efforts of people saving for children in the UK.
The claim came after figures from the Tax Incentivised Savings Association showed that the average contribution rate of the company's CTF customers is above the national norm.
Research from the financial services firm has indicated that parents with low incomes tend to contribute more generously to their child's CTF on a monthly basis than their more affluent counterparts.
In fact, parents with relatively little expendable cash generally add a proportion of their income to their child's CTF that is almost twice as large as is the case among better-off families, Engage Mutual reports.
"Enabling parents to pay as little as £5 per month by direct debit into their child’s CTF makes it more affordable to all families," said Karl Elliott, marketing director at Engage Mutual.
Family Investments reported recently that January 2008 saw a record number of CTF accounts opened across the month.
