Over 50,000 have Britannia CTFs

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Over 50,000 have Britannia CTFs

Fri 22nd Dec 2006

The Britannia Building Society Child Trust Fund (CTF) has seen in excess of 50,000 accounts opened since the government launched them back in January 2005.

Interest rates on the CTF have risen from 4.75 per cent to 6.5 per cent presently, including a bonus. Applications have increased "significantly" since September says Britannia.

Nick Pagon, Savings Product Manager at Britannia Building Society, commented: "CTFs were a great initiative by the government and urged parents not to miss the opportunity to invest in their child's future."

"If parents don't take any action, the government will invest it for them. By removing the choice of financial provider, the voucher may not work as effectively for the long term benefit of the child," he continued.

He also urged parents to be proactive in terms of deciding exactly how the voucher should be spent as the government will invest on their behalf should they not "take any action".

A Britannia CTF can be set up as soon as a parent receives a voucher from the government. The voucher is worth £250 and parents can decide between two different accounts, CTF stakeholder and non-stakeholder.

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