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Parents warned against investing solely in CTFs - 10/05/2007

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Parents should consider investing in other savings products in addition to a child trust fund (CTF), one expert has claimed.

Rachel Thrussell, head of savings at price comparison website Moneyfacts.co.uk, has suggested that parents look to more than a CTF to guarantee their children come into a substantial amount of money later in life.

Opening an individual savings account (Isa) alongside a CTF could help young people to get on the property ladder or buy a first car, she said.

"Stashing away all of your child's savings into a CTF may not be a sensible move," Ms Thrusell commented.

"Every penny will belong to them when they turn 18, and they may decide to blow it all on a flashy car or two weeks in the sun. So make sure you invest your child's vouchers, but if you also save regularly into a tax-free Isa on their behalf, you'll have that extra flexibility and control," she explained.

Meanwhile, Nationwide recently claimed that the government should do more to promote the benefits of CTFs.

© Adfero


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