News
15/11/2006 - All I Want For Christmas Is... A Better Future For My Kids!
The rising costs associated with education, marriage and house buying, are making parents think about their children's long-term interests this Christmas. This is the main finding from research released today, (15 th November) by leading insurer Co-operative Insurance (CIS).
In a survey of 1,000 of Child Trust Fund (CTF) account holders, CIS found that more than 6 out of 10 (62%) parents would prefer friends and family to contribute to their children's future savings now, before they reach an age where peer pressure forces people to buy them the latest high-tech toys and gadgets.
The added advantage of putting money into a CTF this Christmas is that all benefits can now provide tax-efficient savings for even longer. This follows last week's government announcement that CTF accounts can be rolled into an ISA when youngsters reach the age of 18.
Zack Hocking, Head of Savings and Investments at Co-operative Insurance said: "A contribution to a young child's CTF account is an ideal Christmas gift and is a great alternative to the hassle of the shopping, wrapping and the usual clutter of traditional gifts.
"As a result of the Government's announcement, children will be able to move seamlessly from a CTF into a tax-free ISA. This is a fantastic opportunity for children to maximise the benefits of saving and to provide them with the means to help meet major expenses in the future, such as the cost of going to university or buying a first home."
The UK's first ethical stakeholder Child Trust Fund account, provided by The Children's Mutual and distributed by CIS, has been developed in full support of Government efforts to 'kick-start' the savings of a new generation. CIS has joined forces with The Children's Mutual, the UK's only specialist in savings for children to offer a CTF stakeholder account which invests funds in the CIS FTSE4Good ® Tracker Trust.
Parents and guardians can apply for their child's ethical CTF account through CIS by contacting 0845 600 1953 for an application pack.
ends
Notes to Editors:
- ISDN facilities are available for broadcast media interviews.
- Research carried out internally among existing CTF account holders between 9 th and 27 th October 2006.
- The Child Trust Fund distributed by CIS is invested in the CIS FTSE4Good Tracker Trust, a unit trust that tracks the FTSE4Good UK Index. To be listed on the FTSE4Good UK Index, companies must meet certain criteria including working towards reducing their impact on the environment. It excludes industries such as tobacco producers. The CTF will conform to stakeholder product requirements by:
- Having the appropriate exposure to equities for a long-term investment.
- Life-style switching – gradually moving out of equities and into safer investments, such as Government and cash deposits as maturity approaches.
- Capping charges at 1.5% per annum of the account's value.
- Customers should be aware that their child's account is placed in a fund that invests in shares in leading UK companies and they could get back less than they have paid in.
15 November 2006
For further information contact:
Natalie Collins
Co-operative Financial Services Press Office
Tel: 0161 827 5619
Fax: 0161 832 2751
e-mail: nataliepr.collins@co-op.co.uk
