Child Trust Fund Contribution - An ideal xmas present that will grow with your child

The rising costs associated with education, marriage and house buying, are making parents think about their childrenís long-term interests this Christmas. This is the main finding from research released by leading insurer Co-operative Insurance (CIS).

In a survey of 1,000 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 childrenís 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 as 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: ìA contribution to a young childís 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.

ìChildren will be able to move seamlessly from a CTF into a tax-free ISA when they reach 18. 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.î

The UKís first ethical stakeholder Child Trust Fund account, provided by The Childrenís Mutual and distributed by Co-operative Insurance, has been developed in full support of Government efforts to ëkick-startí the savings of a new generation. Co-operative Insurance has joined forces with The Childrenís Mutual, the UKís only specialist in savings for children to offer a CTF stakeholder account which invests funds in the CIS FTSE4Good Tracker Trust FTSE, FT-SE and Footsie are trade marks of the London Stock Exchange Plc and The Financial Times Limited and are used by FTSE under licence.

Parents and guardians can apply for their childís ethical CTF account through Co-operative Insurance by contacting 0845 600 1953 for an application pack.