CashQuestions.com urges family to use savings accounts for kids

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CashQuestions.com urges family to use savings accounts for kids

Fri 24th Dec 2010

People should not put money aside for their offspring just because the Child Trust Fund (CTF) scheme has been withdrawn by the government, according to a commentator from CashQuestions.com.

Editor of the website Annie Shaw pointed out that consumers can use their own Isa allowance to build up a nest egg for their children, or simply utilise a competitive savings account.

She observed that the government could launch a baby Isa in the future to help parents and grandparents put aside money for their younger family members, but she stressed individuals should not halt their savings strategy.

In her opinion, it is sensible to keep putting cash into an account, so that when any new state scheme is introduced people have some capital to deposit.

Ms Shaw said: "We are losing government support for child savings but that doesn't mean that parents, godparents and grandparents shouldn't be saving for their children."

The Institute for Public Policy Research highlighted how no child born after midnight on January 1st 2011 will be entitled to a CTF.

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