Apr 26 2007
With the child trust fund (CTF) now in its third year, it has been reported that 49,000 cash and stakeholder accounts were opened during the first three months of 2007.
The Building Societies Association (BSA) reports that 73 per cent of parents elected to open a cash CTF in the quarter, with total balances on these funds rising to £26.1 million, showing that cash CTFs have remained a popular option for parents.
Brian Morris, head of savings policy at the BSA, said: "The CTF is now two years old and parents have opened accounts on behalf of over two million children.
"Cash CTFs remain popular, accounting for a quarter of all CTFs opened by parents."
The association reported that mailouts from HM Revenue & Customs in February and the promotional CTF Week in January had resulted in a positive effect on the funds.
In January 2007, the BSA reported that the value of balances in cash CTFs had surpassed £200 million.
