Nationwide: Savings reform needed

www.moneynews.co.uk > Banking > Nationwide: Savings reform needed

Nationwide: Savings reform needed

Wed 5th Dec 2007

Inequality in children's savings should be tackled to make it fairer to those who do not qualify for child trust funds (CTFs), a building society says.

Nationwide says there are about ten million children in the UK who are too old to qualify for a CTF and too young to save in an individual savings account (Isa).

This means parents regularly paying into their child's savings account could be landed with a tax bill for thousands, the society claims.

Matthew Carter, director for savings at Nationwide, said: "We are encouraged by the government's commitment to CTFs; however they are ignoring ten million other children who are not eligible by not addressing this tax inequality."

He suggested that the government should allow children to save as much as those with a CTF via their ordinary savings accounts.

Nationwide called for improvements to be made to the Isa system prior to the November pre-Budget report.

It added that parents needed more encouragement to take advantage of the CTF vouchers.

Related News : Banking
	Young people 'should be taught to save'
	Families 'should plan for their children's future
	Switching bank accounts 'not as easy as banks portray'
	Brits facing finance difficulties 'should talk to their bank'
	Brits 'should utilise Isa allowances'
	Brits advised on investment options
	Children 'should be given bank accounts at 16'
	Falling inflation 'could help Brits save'
	Money worries 'are mounting for many'
	Contactless payment 'is secure and convenient'

Related News : Nationwide
	Nationwide launches new credit card reward scheme
	ICB report recommends easier current account switching
	Mortgages are cheaper than two years ago, claims study
	Students fail to take out insurance 'due to apathy'
	Demand for fixed rate mortgages 'increases in economic uncertainty'
	Nationwide reduces rates on five-year fixed mortgages
	Intermediary mortgage lending 'increases for second quarter'
	Nationwide improves mortgage products for intermediaries
	Nationwide reduces fixed mortgage rates
	NLA survey reveals landlords jittery over possible rate increases