12 July 2006
Around a third of UK parents would be encouraged to make savings for their children if available online, claims engage Mutual Assurance.
Parents would prefer to use the Internet to open Child Trust Funds (CTF), which an expert at engage believes would be the "single most effective step" to ensure an early uptake.
Under the current system, parents must apply for a voucher with child benefit, which must then be forwarded on to their chosen provider.
Karl Elliott, marketing director at engage, states that an online system would simplify the application process, making it more effective.
"A key aim of CTFs is to help busy parents to open an account as soon as possible and to encourage an early regular savings habit," he said.
"This means removing barriers and making the process as simple as possible."
Mr Elliott adds that parents often lose, damage or misplace CTF vouchers, leading to a delay in opening their accounts, which could be prevented with an online system.
The Children's Mutual recently stated that CTFs have the potential to change the "nation's savings habits" and provide for the next generation.
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