Investing in your child's future

Two years after the Child Trust Fund was launched by the Government, Britannia Building Society still offers a leading rate and has seen more than 50,000 accounts opened.

Since their launch in January 2005, Britannia has increased rates from 4.75 percent (plus bonus) to 6.50 percent (including bonus) on the tax free Child Trust Fund (CTF). - with applications rising significantly since September when the rate was at 6.25 percent gross/tax free (including bonus).

Other factors, such as peak birth periods for England and Wales, have shown prominent trends in the amount of vouchers invested.

Nick Pagon, Savings Product Manager at Britannia Building Society, said CTFs were a great initiative by the Government and urged parents not to miss the opportunity to invest in their child's future.

He added: "If parents don't take any action, the Government will invest it for them. By removing the choice of financial provider, the voucher may not work as effectively for the long term benefit of the child.

"Our non-stakeholder cash CTF has an excellent variable rate if interest, is tax free and there is no risk to the child's savings."