Child Trust Funds 'did not achieve goal'
Posted by on 28th May 2010 to Debt News
Child Trust Funds (CTFs) did not encourage the savings culture that the UK needs, according to one finance expert.
The £250 vouchers, introduced by the last administration, were intended to kick-start the savings habit by encouraging people to deposit them in high-interest accounts for their children.
It was announced earlier this week that the scheme would be entirely abolished, without any concessions for poorer families.
Kevin Mountford, head of banking at the comparison site moneysupermarket.com, commented: "CTFs were an admirable idea, but never got chance to bed in as a trigger for a long-term savings mentality.
"The bigger problem is that we really need to encourage people that it's even worthwhile saving, regardless of the label these accounts are given."
He added that rising rates of inflation and a lack of accounts offering friendly interest rates is discouraging people from saving.
"A concerted effort between the government and the savings industry is vital in making saving attractive again."
Posted by Clement Moine
Debt Free Helpline offers debt management plans as well as a range of other debt solutions. If you are worried about debt, contact one of our trained debt advisers today.
The £250 vouchers, introduced by the last administration, were intended to kick-start the savings habit by encouraging people to deposit them in high-interest accounts for their children.
It was announced earlier this week that the scheme would be entirely abolished, without any concessions for poorer families.
Kevin Mountford, head of banking at the comparison site moneysupermarket.com, commented: "CTFs were an admirable idea, but never got chance to bed in as a trigger for a long-term savings mentality.
"The bigger problem is that we really need to encourage people that it's even worthwhile saving, regardless of the label these accounts are given."
He added that rising rates of inflation and a lack of accounts offering friendly interest rates is discouraging people from saving.
"A concerted effort between the government and the savings industry is vital in making saving attractive again."
Posted by Clement Moine
Debt Free Helpline offers debt management plans as well as a range of other debt solutions. If you are worried about debt, contact one of our trained debt advisers today.
