Halifax announces 250,000th Child Trust Fund

The Halifax has announced today that newborn baby Jennifer Chapman from Farnham in Surrey is the 250,000th Halifax Child Trust Fund (CTF) customer. She could have £34,820 when she turns 18.

Jennifer's mum Lisa Chapman said: "We chose a Halifax Child Trust Fund because we do all our banking with Intelligent Finance, which is part of the Halifax. On top of the £250 from the Government, we pay £100 a month into it so we can build a nest egg for Jennifer's future."

With an initial lump sum of £250 and an additional £100 each month, Jennifer could have a lump sum of £34,820 when she turns 18, assuming a growth rate of 7%.

During Child Trust Fund Week (Jan 15 – 19) Ed Balls, the Economic Secretary, announced that almost 2.5 million CTF accounts have now been opened, with three-quarters of all parents opening their children's accounts themselves.

However, this leaves a quarter who are missing out on potential growth while the voucher is not invested by the parents or the Government.

Paul Stanley, at Halifax Financial Services said: "Many parents probably still have opening a Child Trust Fund on their 'to do' list, but we're urging them to act now and ensure their children benefit from their investment. At 18 years of age the amount of money in the account could help their children with education, learning to drive or even a house deposit."

"With the Halifax's savings pedigree, excellent e-commerce facilities and an ever-increasing branch network, it's no wonder that 250,000 people have opened Halifax CTF accounts."

The Child Trust Fund Initiative

The Child Trust Fund was introduced for all children born in the UK on or after 1 September 2002, with a £250 voucher from the Government to start off each child's account, and a further £250 paid into the account at age 7. Children from lower-income households receive an extra £250 top-up at birth and at age 7. Anyone can pay money into the account up to £1,200 each year, and neither parents nor children pay tax on any gains and/or interest in the account.

All parents are entitled to Child Benefit and, once registered for it, the government automatically sends a £250 Child Trust Fund voucher.

Child Trust Fund Week is January 15th-21st 2007 childtrustfund.gov.uk.