Child Trust Fund could keep your child debt free through uni

Investing in a Yorkshire Building Society cash Child Trust Fund (CTF) could keep your child debt free through university, according to the building society.

If parents start saving with Yorkshire when their child is born and add just £2.70 per day to their CTF over the next 18 years, their child will be able to study through university and leave debt free. Students in England currently leave university with an average debt of £15,813, after three years of study, according to figures released by The Push Student Debt Survey 2009. That is expected to rise to £22,548 in the next 18 years.

The Yorkshire's cash CTF is the highest earning of the cash CTFs offered by the main high street providers, yielding 3% in the first year and 2.3% thereafter.

Chris Edwards, Yorkshire's Head of Savings & Mortgages said: "Child Trust Funds are a really good way for parents to save for their child's future and recent research has found that cash Child Trust Funds have so far proved to offer greater returns than stakeholder versions. Parents can have peace of mind that if they save with us, their child can go to university and leave without having a mountain of debt to pay back."

Further education for their children is considered to be extremely important to parents, according to Yorkshire's research. When children have access to the fund at the age of 18, the majority of parents would like their children to put the money towards further education.

Chris added: "Applications to attend university are at an all-time high and with the cost of studying continuing to rise, it's more important than ever to start the savings habit early."

In the past month alone, the Yorkshire has seen a 20% increase in parents opening a cash Child Trust Fund. It is urging parents to take a closer look at the performance of their chosen fund because on 1st September 2009, the first parents whose children were born on 1st September 2002 will share a second £150 million windfall as their children turn seven.

Chris continued: "There are huge differences in rates available for cash Child Trust Funds and we're urging parents who have existing Child Trust Funds or those who are in the process of choosing a provider, to shop around for a good deal."

For more information, visit ybs.co.uk