Experts call for wise investment of CTF vouchers
Wednesday, October 5, 2005
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The IMA has claimed that ten months after being issued, many parents have not invested Child Trust Fund (CTF) vouchers introduced by the government in savings accounts, meaning time is running out for parent choice.
The IMA is urging parents to act quickly to avoid losing the freedom of where the CTF money goes: "The message to parents must be invest now to make the most of your child’s money," said Mona Patel, IMAs head of consumer affairs.
"Using investments funds, which are designed for the long-term, gives you the potential to earn higher returns than other types of account, although they may not be suitable for everyone."
After 12 months of issue, the vouchers automatically get placed in the HM Revenue and Customs default stakeholder account.
Gordon Brown recently stressed the importance of the child trust funds at the Labour Party conference, saying they will allow five million children to "have assets of their own" by 2010.
The tax-free savings initiative begins with a lump sum of £250-£500 followed by a further government payment when the child turns seven.
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