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Changes made to child trust fund applications

Applying for child trust funds (CTFs) is to become much simpler in future, fund firm Family Investments has pointed out.

Currently, parents hoping to open an account have to apply by phone or online - and then send off a further voucher.

From April 2009, new government regulations mean that parents are no longer required to send the voucher - making the process much more convenient.

CTFs, designed to be taken out for a young child, work by an initial lump sum being invested with a funds firm - which then either puts the money in stocks and shares or in a cash savings account.

Commenting, head of savings and investments at Family Investments Miles Bingham said: "With parents with eight week old children…just simple things like putting a piece of paper in an envelope and sending it off don't always get done.

"So there are a whole bunch of people who are applying for a CTF but never complete the process, because they don't actually send us the physical voucher."

Figures from Family Investments show that over 400,000 families have applied for a fund with the firm since they were introduced in 2005.

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