The Children's Mutual Reveals Child Trust Funds Top 4.4 Million
Released
on: July 22, 2009, 9:57 am
Author:
Katie Donlan
Industry: Financial
The Children's Mutual has highlighted that the latest figures
issued by HM Revenue and Customs (HMRC) show the continuing revolution
in children's savings and demonstrates parents' commitment to their
children's futures in the current environment. The quarterly Child
Trust Fund (CTF) statistics released by HMRC have revealed that 4.4
million children under seven in the UK now have a Child Trust Fund.
David White, Chief Executive of the Child Trust Fund provider, The Children's
Mutual said: "These latest figures show that the Child Trust Fund generation is growing steadily and, unlike
any generation before them, in 11 years' time the first CTF recipients will reach
adulthood with greater financial knowledge and an important financial headstart. The
average amount saved each month by our CTF customers is £24. Over 18
years, these savings could produce a fund of around £9,750*, a significant financial
help for young adults who may want to attend university or put down a deposit on
their first home.
Recent research by The Children's Mutual found that despite the recession parents
still feel that saving for their children and giving them the best future they can
is very important. In the last year The Children's Mutual has seen a considerable
rise in the number of CTFs being opened and a 16%
increase on 2007, with record months for the number of parents with newborns opening
CTF's online in May and June.
David continued, "It is now more important than ever during these challenging
economic times, that parents take the time to choose where to open a CTF and start
saving towards their child's future. And now that parents no longer have to hand
over a CTF voucher when opening a CTF, it's even easier and faster for them to set up their child's
account."
Had a product similar to the CTF existed 18 years ago and family and friends saved£100 a month in a shares-based plan for a child over that time, that youngster could
now have the benefit of a fund worth £37,400**.”
- Ends -
Notes to editors
* Projected values quoted based on investing £24 a month (plus £250 government
vouchers at birth and age 7) for 18 years in a stakeholder CTF account. 7% per annum
assumed investment return, with charges of 1.5% of the CTF account value each year.
Projected values cannot be guaranteed as shares can go up or down. Final payout
could be more or less than this.
** The assumed maturity figure is based on a hypothetical calculation, tracking the
real performance of shares over 18 years, from 1991 to 2009. They include £250
invested at the child's birth and at age seven and 1.5% charges, as with the
Stakeholder CTF today. This assumes investment in the FTSE All-Share index over
that period including reinvestment of the dividend yield. The figures also include
lifestyling. Amount Received as at end May 2009
About The Children's Mutual - Home of the Child Trust Fund
The Children's Mutual's mission is to help parents, grandparents, family and
friends fulfil their hopes for today's children. The Children's Mutual is the only
UK company that specialises in long term savings for children and is now the choice
of 1 in 4 parents for their child's Child Trust Fund, with more than 650,000
accounts.
The Children's Mutual has won the The Moneyfacts Award for Best Child Trust Fund
Provider every year since its 2006 launch.
The Children's Mutual PR Contact:
Katie Donlan
Consolidated PR
22 Endell Street,
London
WC2H 9AD
020 7781 2376
www.thechildrensmutual.co.uk
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