May 10 2007
The increasing number of British parents taking the first steps towards investing in a Child Trust Fund (CTF) has been hailed as "great news" by the head of savings at Moneyfacts Rachel Thrussel.
A full 49,000 CTF accounts were opened during the first three months of this year, according to figures from the Building Societies Authority, which Ms Thrussel has welcomed as an encouraging sign for child savings effort around the country.
However, the savings expert notes that with a number of options available to parents looking to secure the financial future of their children, deciding where and how to put money aside is not always straightforward.
Ms Thrussel commented: "Stashing away all of your child's savings into a CTF may not be a sensible move. Every penny will belong to them when they turn 18 and they may decide to blow it all on a flashy car or two weeks in the sun."
"Make sure you invest your child's vouchers, but if you also save regularly into a tax-free ISA on their behalf, you'll have that extra flexibility and control," she added.
Government officials are set to be on hand to offer CTF advice at the upcoming Baby Show, which is to take place at the Birmingham NEC later this month.
