Parent Child Trust Fund Take Up Still Thriving

<sub><sup>In their annual Child Trust Fund Statistical Report http://www.hmrc.gov.uk/ctf/statistical-report-2009.pdf the Government reports that parental CTF take-up increased marginally by 1% (from 73% to 74%) during 2007-08. The number of Child Trust Fund vouchers issued in the year up to April 2009, however, was 823,504 – or 70,000 a month. Parents opened 552,438 accounts directly on behalf of their children and HM Revenue & Customs opened a further 211,366 accounts where vouchers issued in previous years had expired.

In their annual Child Trust Fund Statistical Report http://www.hmrc.gov.uk/ctf/statistical-report-2009.pdf the Government reports that parental CTF take-up increased marginally by 1% (from 73% to 74%) during 2007-08. The number of Child Trust Fund vouchers issued in the year up to April 2009, however, was 823,504 – or 70,000 a month. Parents opened 552,438 accounts directly on behalf of their children and HM Revenue & Customs opened a further 211,366 accounts where vouchers issued in previous years had expired.

The Child Trust Fund is a long-term savings and investment plan set up by the Government to encourage parents to save for their children’s future. Available to all children born on or after 1 September 2002, parents receive an initial £250 in vouchers to open their account, with a further £250 when their child reaches seven. In addition, parents, family and friends can contribute up to £1,200 to the Fund each year.

Although opening a CTF is a relatively straightforward procedure, choosing the right one for you can be more difficult. There are three types of accounts (cash, stakeholder or shares) available from numerous banks and building societies each with their own offers, terms and conditions and rates. In fact, during the last year alone (to April ‘09), there was an increase in CTF providers from 49 to 71.

With so many CTFs available, parents are often left confused. Research has shown that many are simply overwhelmed by the sheer amount of information available. MyEggNest.com on the other hand is an invaluable resource for parents, providing easy to understand comparison table of the three types of Child Trust Funds: Cash, Stakeholders and Equity (or Shares).

Joe Luong, MyEggNest MD, says, “Our feedback has shown that many parents are simply overwhelmed by the amount of information available from various financial bodies regarding Child Trust Funds. What parents really need is clear, concise information so they can make an easy comparison. MyEggNest.com enables them to effortlessly research everything they are likely to need from one reliable source.’</sup></sub>

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