Child Trust Fund opening rates increase to 72 per cent

  • Story by: Sharon Flaherty
  • Magazine: FTAdviser
  • Published Friday , May 16, 2008

The opening rates of Child Trust Fund’s (CTF) are on the increase, according to economic secretary Kitty Ussher MP.

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Speaking at this week's Treasury Select Sub-Committee hearing, Ussher revealed new figures that show CTF opening rates have increased to 72 per cent since they were launched at the beginning of 2005.

The scheme is part of the government drive to boost long-term savings amongst families in the UK.

Ussher also reaffirmed her commitment to increasing opening rates of CTFs and highlighted the link between parents actively opening accounts and the increased likelihood of them making additional contributions to them over the life of the account.

The Tax Incentivised Savings Association (TISA) director-general Tony Vine-Lott said: "A key aspect of the CTF is the link between providing a significant asset to a young person turning 18 and getting children and families engaged with financial products.

"Providers have had a key role to play with government to encourage parents to add to their child's scheme.

"TISA now looks forward to continued dialogue with government in order to increase the levels of contributions into CTFs."



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