(1888PressRelease)
April 07, 2009 - The leading Child Trust Fund provider’s calculations also show that nearly half of today’s 18-year-olds could have received just over GBP9,975 each, based on real stock market performance since 1991 and its customers’ savings behaviour today. Whilst past performance is no guide to what may happen in the future the figures being released demonstrate the potential future power of the CTF, and show how it could provide a generation of young adults with significant financial assets at age 18 which may help finance their aspirations and bolster the UK economy.
According to The Children’s Mutual, engagement with the CTF remains strong despite current testing economic times. Since its inception in April 2005, more than four million Child Trust Fund accounts have been opened in the UK and nearly one million Child Trust Funds accounts (22 per-cent) are being topped up regularly through monthly direct debits by parents and wider family.
The Children’s Mutual’s figures illustrate that, before the Child Trust Fund was introduced just one in five children had a long-term savings account, now nearly 50 per-cent of families who actively place their child’s CTF voucher with the leading CTF provider set up a direct debit when they open the account. And with many more families now having more than one CTF eligible child, top up levels among The Children’s Mutual’s customers are remaining consistent, demonstrating families’ commitment to the scheme despite the current climate.
Going Voucherless
The four-year anniversary of the Child Trust Fund marks a key change in the application process as parents will no longer need to supply a paper CTF voucher in order to open an account (provided that the company they choose has agreed to update to a voucherless system). According to The Children’s Mutual, the move to a ‘voucherless’ process could increase the number of actively placed CTFs by as much as 10 per-cent. The company will be introducing the system as part of its own processes from Monday 6 April.
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