Bank launches Trust Funds for children

Lloyds TSB announced plans today to offer Child Trust Funds in support of the British government’s new savings initiative launching in January.

The move will see the bank linking with The Children’s Mutual, the UK’s only specialist in savings for children, to provide a stakeholder Child Trust Fund (CTF).

The account will be available through Lloyds TSB’s branches or its phone and internet banking services, and will allow parents to use the £250 (€360) vouchers that the Inland Revenue will be issuing from January.

Rick Hunkin, savings director at Lloyds TSB, said: “This is an exciting initiative which will help kick-start the savings of a new generation, and we’re keen to put our weight behind this positive move.

“By bringing together Lloyds TSB and The Children’s Mutual, we will be giving the best support possible to the Government’s scheme – marrying accessibility to expertise in this area.”

David White, chief executive of The Children’s Mutual, said: “We’ve been focused on Child Trust Funds from the outset, doing our best to support the (British) government in shaping the concept.

“It’s good to see that companies like Lloyds TSB are getting behind the initiative, and we’re very pleased to be working with them to make these funds more widely accessible for parents.

“We truly believe that this initiative will play an important role in re-establishing a savings culture in this country.”

Lloyds TSB customers will be able to open their child’s CTF account from January onwards, although the accounts will not go live until April.

The stakeholder account, which will be managed and administered by The Children’s Mutual, fully meets British government requirements. The fund will be invested in Scottish Widows’ Balanced Growth Portfolio, with charges capped at 1.5% per annum.