Child Trust Fund Uptake Slowing Down
Figures show less and less parents are opening Child Trust Fund accounts
23rd November 2005
New figures from the Building Society Association (BSA) show that the number of new CTF accounts being opened has fallen to it's lowest level yet, with only 26,000 new accounts opened in October compared to 31,000 the month before.
Parents of all newborn children are issued with a 'baby bond' voucher for at least £250 yet many don't open an account with them, which the BSA says is down to a lack of financial education. Specifically, many parents don't understand the difference between a stakeholder and a non-stakeholder CTF, leading them to delay opening an account at all.
However, if parents fail to open an account, their children won't miss out - after a year, the government will open a stakeholder account in their name and cancel the voucher issued to the parents.
Read More: BBC : Child trust funds 'lose momentum'
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