Update on Nationwide Child Trust Funds announced

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Update on Nationwide Child Trust Funds announced

Wed 1st Jun 2005

An update has been released on the Nationwide Child Trust Funds, with the news that so far 125,000 applications have been received.

The news means that Nationwide, which is still receiving an additional 1,000 applications each day, has a 17 per cent share of the market.

Nationwide is one of only four high street organisations to offer parents both a cash and a stakeholder equity Child Trust Fund.

Of those opting for a Nationwide Child Trust Fund, 40 per cent are reportedly choosing equity funds, while the other 60 per cent opt for a cash fund.

Stuart Bernau, executive director at Nationwide, said: "The government has today announced that it has issued vouchers to over 1.7 million parents but fewer than one in three have taken action and opened a Child Trust Fund.

"We urge parents who have yet to invest the voucher to do so as children will be missing out on potential stock market growth or interest if they fail to act."

The Nationwide Child Trust Fund offers an interest rate of five per cent gross per annum variable, and an additional annual bonus of one per cent per annum for accounts that are topped up by a minimum of £240 per annum, or £5 a week.

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