Over 5 million children have CTFs

Wednesday, March 31st 2010

More than five million children are now benefiting from a child trust fund (CTF), according to findings from HM Revenue & Customs.

David White, chief executive of The Children's Mutual - which provides the fund - called this "a significant milestone".

Not only is this true for the families involved in the saving schemes, but it is also a milestone for those who provide the funds.

"Child trust funds are approaching their five year anniversary in early April and currently nearly three quarters of parents choose to proactively open their child's CTF account," Mr White added.

And there is an active engagement rate of almost 85 per cent in CTFs, he continued.

Babies born on or after September 1st 2002 became eligible for the £250 voucher in their CTF account.

This money must remain in the fund until the child turns 18 and relatives and friends can contribute to the scheme.