Halifax says it has opened 210,500 child trust fund accounts following Government figures that 2,486,000 vouchers being issued to date.
Of these, 1,654,000 have been used to open an account – 66.5 per cent of the total.
This figure compares with 64.2 per cent of vouchers being used in the period up to February 20 2006.
If the CTF voucher has not been used to open an account after 12 months, the Government will automatically open a stakeholder CTF for the child, informing the parents of the account details. Halifax says it is one of the stakeholder CTF providers chosen to operate these accounts.
The bank says in order to minimise any potential risk of investing in equities, the lifestyle requirement of stakeholder CFTs ensures that when the child is 13, money in the account starts to be moved to lower risk investments, meaning the investment is protected from any potential stock market volatility as it approaches the end of its 18-year term.
Halifax Financial Services managing director Ray Milne says: “We are encouraged to have opened over 210,000 CTF accounts and to see that overall take-up of accounts has significantly increased. The CTF plays a vital role in encouraging parents to save more towards providing a nest egg for their child’s future.
“Most parents probably still have opening a CTF on their ‘to do’ list, but we’re urging them to act now and ensure their children benefit from their investment.”