Investments News

CTF growth "healthy" - 26/04/2007

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The first three months of 2007 have seen a strong rise in the take-up of cash child trust funds (CTF), claims a new report.

According to the Building Societies Association (BSA), almost 50,000 of the tax-free accounts were opened by parents in this year's first-quarter.

Figures from the organisation also reveal that the total balances on existing cash CTFs have grown by £26.1 million between January and March 2007.

"The first quarter of 2007 has been a healthy one for the CTF with strong growth in cash CTF balances," remarks Brian Morris, head of savings policy at the BSA.

He adds: "Cash CTFs remain popular, accounting for a quarter of all CTFs opened by parents."

Mr Morris also notes that January's CTF Week and the issue of postal reminders to parents regarding their eligibility for CTF vouchers have had a "positive effect" on take-up rates.

According to the BSA, the value of cash CTFs opened by families across the UK currently stands at £233 million.

The recent promotional campaign for the scheme was launched by economic secretary Ed Balls and backed by celebrity parents such as Emmerdale actress Sheree Murphy.

© Adfero

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