More choice for CTF accounts
Leeds Credit Union (LCCU) has become the first credit union in the UK to offer a specialist child trust fund account.
Parents looking to set up a Child Trust Fund (CTF) account now have an increasing number of providers to choose from. Under the CTF regulations, any child born after September 1st is eligible to receive a voucher and have a fund set up for the future.
Family members and other adults can opt to place the money in a stakeholder or non-stakeholder fund, depending on what would suit the individual situation.
The LCCU is offering a non-stakeholder account and believes that this option offers a good risk free outlook for the future and ‘regular and highly competitive dividends’.
Sue Davenport, chief executive of LCCU, has urged parents who have not yet invested the voucher to consider the benefits it will bring to their child’s personal finance in the long term.
Adults can make additional contributions and this helps to maximise the amount the child will receive when they reach 18, and Ms Davenport pointed out that regular top-ups could make a big difference.
‘By saving £10 per month it would be worth £4,146 and with a £100 monthly deposit there would be a cash pot of £36,048,’ she explained.
Despite some concerns that a number of parents are ignoring the opportunity to save for their child’s future, figures have indicated that people are becoming more aware of the advantages of the scheme.
‘Saving your CTF with Leeds City Credit Union offers a safe and ethical place to save, away from the commercial, profit motivated market place,’ Ms Davenport concluded.