Nationwide calls for children's savings initiatives

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Nationwide calls for children's savings initiatives

Fri 5th Oct 2007

Ahead of the Pre-Budget Report, Nationwide Building Society has asked the government to consider ways in which children's savings initiatives can be promoted.

The building society said it thinks parents, friends and family should be encouraged to save for children, regardless of whether they qualify for a child trust fund (CTF).

At the moment, parents who have not started a CTF for their children are taxed if they want to save a similar amount.

Nationwide has asked for the tax exemption thresholds for interest which is earned on savings by parents to be raised.

Additionally, it would like CTFs to receive a further government contribution of £250 when the child turns 11, as well as a coordinated and continuing effort to remind families about CTFs.

Graham Beale, Nationwide's chief executive, commented: "To build a savings habit in younger people, Nationwide, which is one of only a few providers to offer both cash and equity Child Trust Funds, would like to see Alistair Darling encourage more parents to contribute to the funds."

The Pre-Budget Report is expected to be delivered next week.

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