Pay into Child Trust Funds urges Nationwide
Nationwide has announced that 60% of parents have not made any additional payments into Child Trust Funds (CTFs) as the fifth anniversary since CTFs were introduced draws near. The Nationwide is disappointed that funds are not added to and is urging parents to make a monthly contribution – no matter how small. If this is achieved, the fund will have grown to a considerable sum by the time a child reaches 18.
However, according to The Children’s Mutual, 43% of parents are contributing an average of £24 a month. Funds could build up to nearly £10,000 in 18 years time if this continues. The organisation also highlighted that anyone can pay into the account. Consequently, if both sets of grandparents were to pay £24 a month into the account, the fund could increase to £27,070 by the time the child reaches adulthood.
The Nationwide highlighted that as children grow up and see their funds grow, they will hopefully have understood the benefit of savings and continue this throughout their adult life.
The Nationwide is advising parents to invest the government voucher as soon as possible so they can benefit from the 18 years of tax-efficient interest.
HM Revenue and Customs has established that almost 3 million CTF accounts have now been opened.