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EPR Archived News |
Moneynet slams long term returns on Child Trust Funds - and questions why National Savings does not offer a schemeReleased on = August 4, 2005, 6:15 am Press Release Author = Moneynet Industry = Financial Press Release Summary = Showing poor returns on the investment: Moneynet questions the true long term value of the Government Child Trust Fund scheme Press Release Body = Child Trust Funds: Moneynet Questions Long Term Viability In Face Of Poor Returns * Standard CTF schemes set to deliver ‘a measly’ £500 at age 18 * Moneynet asks why National Savings does not offer a CTF AS the government this week reportedly commits to spending a further £2million to boost flagging interest in Child Trust Funds (CTF), online financial data comparison site moneynet.co.uk questions the viability of the initiative and the long term investment value to parents. “It is hardly surprising that there has been limited interest in CTF’s,” said Moneynet chief executive Richard Brown. “Our research (see table) shows that the best of the non-stakeholder accounts pays 6 per cent. “With
inflation currently running at around 2 per cent, this means that
the true return on the best of these accounts for standard taxpayers
is only 4 per cent per “So at age 18 – when the schemes are due to mature - the value of the fund in real terms will, at best, be a measly £500. And with student debt averaging £13,000 in today’s terms it really appears that there is more hype than substance to this scheme and it’s hardly surprising that it hasn’t captured the imagination of the general public’. Brown also questions why government run savings body National Savings does not offer a Child Trust Fund Account. “The government
should be putting its money where its mouth is: there should have
been an ideal opportunity here for National Savings to really get
behind the scheme and offer a market leading account to encourage
further saving from parents and “Instead it has been left to the open market with the result that the accounts are little better than can be found in the wider savings arena.”
Ends ***** Best and Worst Child Trust Funds: source Moneynet August 2005 Best CTF Building Soc Accounts If No Additional Deposits Made: Ipswich Britannia
Monmouthshire Leeds &
Holbeck Notes for editors: Moneynet press enquiries Richard Brown, Chief Executive, 020 8313 9030 Moneynet.co.uk is the UK’s longest established online personal finance research and data analysts. The company offers consumers a choice of thousands of low cost financial services products. From mortgages, personal loans to motor, home and medical insurance, credit cards, savings accounts and best buy fixed rate products, Moneynet is one of the most comprehensive online services of its kind in the UK. Founded by chief executive Richard Brown, the Moneynet brand is destined to become one of the UK's major players in consumer finance products. Consumer enquiries:
A David Andrews Media Ltd Release July 2005 David Andrews,
David Andrews Media Ltd 01273 774109/07941 255855 Online distribution
by bigmouthmedia ( http://www.bigmouthmedia.com ). Bigmouthmedia
is a search engine optimisation and search engine marketing agency,
offering paid search (PPC), organic search and link strategy (online
PR), as well as Web: http://www.bigmouthmedia.com Web Site = http://www.moneynet.co.uk Contact Details
= http://www.moneynet.co.uk
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