Time running out for investment

Friday, January 6, 2006

In under a week's time the government will automatically place the thousands of trust fund vouchers that have not already been used for investment in a child's future in a savings account.

Child Trust Funds were launched on January 11th 2005 and Wednesday will mark the year anniversary for the investment opportunity.

"The bad news for these parents is that stock markets rose sharply over the year so their children have already missed out on bumper returns," said Jason Hollands, head of communications at investment firm F&C Asset Management.

However, even those parents who have invested their vouchers are facing a deadline due to the cap on the amount of investment that can be made each year.

"You can invest up to an additional £1,200 each year in your child's account over and above the voucher. The start date for each annual allowance is your child's birthday except for this first year when it is the date the account was opened," Mr Hollands said.

"So, if you were an early opener of a CTF and are able to top up then you should act soon."

The £250 vouchers can be placed in a variety of accounts, but the government has suggested it will not seek out the best value account when it deposits any uninvested vouchers next week.

Interested in investing your money? Click here:
http://www.europinions-finance.co.uk/investments/investments/