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Seven out of 10 parents opt for cash CTFs

Seven out of 10 parents are opting for a cash-based child trust fund account, says the Building Societies Association.

Of the 50,000 CTF accounts that were opened during June, 31,000 were cash as opposed to the stakeholder option. Of the 270,000 CTF accounts that have been opened to date, over 70 per cent of these are inves-ted in cash.

The total amount placed in CTFs so far totals 51m. Early figures suggest that the majority of this total comes from the 250 vouchers provided by the Government.

Up until this month, there were eight providers of both cash and stakeholder CTFs but Leeds & Holbeck Building Society and Monmouthshire Building Society have brought the total number of providers up to 10, nine of which are societies.

The BSA is predicting the majority of parents will continue to choose cash CTFs for their children in the future.

Head of savings policy Brian Morris says: “Anecdotal evidence suggests that many parents have still not decided where to put their child’s voucher. We believe that parents should have the choice between cash and equity inv-estments and building soci-eties are helping to give them that choice.”

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