Children's Mutual: Saving money better with shared accounts

Wed, 19 Oct 2005

Parents who want to start saving money with their Child Trust Fund (CTF) vouchers should consider investment into a stakeholder account, the Children's Mutual suggests.

With letters going out this week to parents who are yet to invest their CTF vouchers, the Children's Mutual also says people should take action as soon as possible.

The stakeholder account has been designed specifically for parents who want to start saving money with the CTF voucher, says the savings provider's chief executive, David White.

He said parents who have not yet invested their vouchers could be jeopardising their children's financial futures.

"We understand that parents with young children are pushed for time and placing the CTF voucher is another task on their long to do list," Mr White said.

"However, every day spent procrastinating is potentially costing their child in returns and consequently potentially eroding the lump sum they'll receive at 18," he warned.

The Children's Mutual suggests that parents start saving in share-based accounts, like three-quarters of parents who already invested their CTFs.

Parents who invested in cash accounts should consider whether it is worth the effort that is needed to move their account around regularly to take advantage of the best interest rate, Mr White says, "or whether they would be better choosing an option that had historically outperformed cash".

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