Parental Plans for Child Trust Funds
Survey by the Halifax shows parents' plans and hopes for baby bonds
16th June 2005
A survey by Halifax Financial Services reveals that 6 out of 10 parents would like their child's baby bond account to be used to help them through university. Baby bonds, or child trust fund (CTF) accounts are started off with a donation of at least £250 by the government for all qualifying children, and can be topped up by parents with up to £1,200 a year.
The funds are locked into the account until the child turns 18, at which age he or she can choose to use the investment returns for whatever they want.
The survey suggests that 60% of parents will use the top up feature but only 8% will contribute the full allowed amount. The biggest group, 42%, said they would add £100-£250 a year.
Other uses that parents would like the investment be put to included a deposit for a house, or to buy a car.
Read More: BBC
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