Child Trust Fund Set To Bolster UK Economy

Over GBP3.5 billion could have been injected into the UK economy this year if Child Trust Funds (CTFs) had been introduced 18 years ago, according to new calculations released by The Children’s Mutual (http://www.thechildrensmutual.co.uk/) to mark the fourth anniversary of the scheme going live.

The leading Child Trust Fund provider’s calculations also show that nearly half of today’s 18-year-olds could have received just over GBP9,975 each, based on real stock market performance since 1991 and its customers’ savings behaviour today. Whilst past performance is no guide to what may happen in the future the figures being released demonstrate the potential future power of the CTF, and show how it could provide a generation of young adults with significant financial assets at age 18 which may help finance their aspirations and bolster the UK economy.

According to The Children’s Mutual, engagement with the CTF remains strong despite current testing economic times. Since its inception in April 2005, more than four million Child Trust Fund accounts have been opened in the UK and nearly one million Child Trust Funds accounts (22 per-cent) are being topped up regularly through monthly direct debits by parents and wider family.

The Children’s Mutual’s figures illustrate that, before the Child Trust Fund was introduced just one in five children had a long-term savings account, now nearly 50 per-cent of families who actively place their child’s CTF voucher with the leading CTF provider set up a direct debit when they open the account. And with many more families now having more than one CTF eligible child, top up levels among The Children’s Mutual’s customers are remaining consistent, demonstrating families’ commitment to the scheme despite the current climate.

Going Voucherless
The four-year anniversary of the Child Trust Fund marks a key change in the application process as parents will no longer need to supply a paper CTF voucher in order to open an account (provided that the company they choose has agreed to update to a voucherless system).

Experts: The Children’s Mutual is the only company to specialise in savings and investment for children. Offering a wide choice of funds to meet the needs and preferences you may have for your child’s investment.

Market leaders: One in five parents actively open their child’s Child Trust Fund with the company and manage over 600,000 CTFs as at January 2009. The Children's Mutual have more funds under management in Child Trust Funds than any other provider in the UK.

Partners: Include many well-known companies such as Boots, ASDA, Mothercare, Lloyds TSB and Bounty. We’re also proud to work with institutions dedicated to improving the lives of parents and children, such as the Royal College of Midwives.

Award-winners: Voted Moneyfacts Best Child Trust Fund provider for 2006, 2007 and 2008.

Stephanie Quantick
The Children’s Mutual
Web:http://www.thechildrensmutual.co.uk/
Tel:01892 775 348
Email: stephanie.quantick@thechildrensmutual.co.uk
Add: Freepost RLRZ-ZAZZ-GACY
The Children's Mutual
PO Box 2067
Gloucester
GL4 3YU

This release was published on openPR.