Parents engage with CTF to give children a chance

Reports that increasing numbers of parents, and wider family, are topping up Child Trust Fund (CTF) accounts have been heralded as ‘great news’ by leading provider, The Children’s Mutual.

David White, Chief Executive of The Children’s Mutual, said that the industry news reflects what The Children’s Mutual has been experiencing for some time.

Mr White said: “Since August last year, at least 50 per cent of the families opening CTFs with us have been setting up a direct debit to top up the accounts from day one. This is fantastic news for the children, particularly as the amounts being saved have increased dramatically from the pre-CTF world. The average CTF account held with The Children’s Mutual is now seeing top ups of £24 a month, which in 18 years’ time could deliver £9,700[2] for the child.

“We are also delighted that the majority of parents in the UK are opting for share-based savings accounts, with 74 per cent having opened a stakeholder account[3] - the Government’s preferred option. As well as offering potential growth from the stock market, the stakeholder account delivers the ‘best of both worlds’ with lifestyling built in to manage risk.

“These figures show that parents recognise the importance of their children having a significant financial springboard into adulthood and that they are truly engaging with the CTF,” Mr White said.