CTF Revenue Re-Mailing Applications at Family Increase By 48% Mothers are Responsible for Setting up Vast Majority (82%) of all CTF Accounts

Latest figures(1) from Family Investments, the market leader in Child Trust Funds with 225,000 registered accounts to date, reveal today that CTF applications at Family have dramatically increased by nearly half (48%) in the last fortnight as a result of the Revenue re-mailing in October of this year.

(PRWEB) November 19, 2005 -- Latest figures(1) from Family Investments, the market leader in Child Trust Funds with 225,000 registered accounts to date, reveal today that CTF applications at Family have dramatically increased by nearly half (48%) in the last fortnight as a result of the Revenue re-mailing in October of this year.

Is the message getting across?
Following this marked increase in applications, the Revenue is to be commended for prompting more parents to take action before vouchers are automatically allocated in the New Year, and for raising general awareness of the scheme by repeating its advertising campaign. Comprehensive research (2) carried out on behalf of Family looking at the Revenue’s advertising campaign this year shows that it has succeeded in raising awareness, particularly amongst mothers. The majority of mums (68%) say they have seen the Revenue’s TV advertising campaign compared to nearly half (48%) of dads. Over a third of mothers (34%) say the TV campaign was easy to understand compared to just under a quarter (23%) of dads, and 14% of mums say the campaign has made them more likely to set up a CTF compared to 11% of dads.

John Reeve, Chief Executive, Family Investments commented, “More parents are now aware of the scheme as a result of the Revenue’s on-going campaigns and it is particularly encouraging that we have seen a 48% increase in applicants. However, as an estimated 700,000 parents from the original group still have vouchers to place, more work needs to be done to educate parents and to help them make the right financial decisions for their children. Time is now running out as we approach the end of the year and we would urge parents to take action before their choice is taken away and accounts are set up on their behalf.”
                           
More good news
Family estimate that more than 1m of the original vouchers issued earlier this year have now been taken up, in part as a result of the Revenue’s most recent drive. And more encouraging news for the government is that 37% of mums feel having learned about the scheme, they will be more likely to consider other investments and savings products – compared to 35% of Dads.
            
Family’s research has also shown that the majority of parents are looking to make regular top-ups to their child’s accounts, with well over half (58%) hoping to make additional contributions. The vast majority (71%) of parents now consider themselves to be well informed about the scheme.

Mums the word…
The research also found that while 99% of eligible parents have heard of CTFs, it is mothers who are taking a more active interest in making financial decisions for their kids. Six in ten (60%) mums claim they now have enough understanding of the scheme to make informed financial decisions for their children, compared to just over half (53%) of dads, and although men seem to be doing more general research into the various options available for their child’s CTF account, its women who are ultimately calling the shots. 41% of fathers have done research on the internet compared to just 32% of mothers, and 34% of fathers have researched the best accounts compared to just 25% of the mums. However, it is mothers who are responsible for setting up the vast majority (82%) of all CTF accounts.

Spending Daddy’s cash?
While mums are leading the way in making the decisions, it is dads who are more likely to provide regular top-ups for their child’s CTF account. A generous 60% of dads are planning to regularly contribute to their child’s CTF account each year, compared to just over half (53%) of mums. Of those currently making top ups, the average regular payment from parents is £19 per month, up by over £2 per month in the last six months as parents get more comfortable with the scheme, meaning their child could receive a final lump sum of £7,9403 when their account matures at age 18. Family believes this figure will continue to grow significantly as more gift top ups flow in from family and friends, especially over the Christmas period.                                  
John Reeve, Chief Executive, Family Investments commented, “It’s pleasing to see the pace of applications increase. Simplicity and ease are the key to encouraging busy parents to initiate their accounts and at Family we have just one product that can be set in minutes with a quick phone call. What’s more, top-ups can be made quickly and simply in a number of ways including over the telephone or via the internet.”

Parents can find out more about Family’s CTF, or set up an account for their child direct with Family either by phone on 0800 616695, by texting Family11 to 84118 or online at www.familyinvestments.co.uk.
            
Notes to editors:
1. Market assessment estimated by Family Investments, based on their market leading position.

2. YouGov interviewed a random sample of 589 adults with children eligible to hold CTFs (born on or after 1st Sept 2002) online on 17th to 24th August 2005. Interviews were conducted across the country and results were weighted to the profile of all adults.

3. These figures are illustrative only and based on Family’s current top up experience projected forward at 7% growth per annum minus 1.5% annual charges and includes additional £250 govt. contribution at age seven.

About Family Investments

- Family Investments is the trading name of Family Assurance Friendly Society and Family Equity Plan ltd – one of the UK's largest Friendly Societies with in excess of £1.5bn funds under management and over 700,000 members.

- Family Investments is the biggest selling Child Trust Fund provider with our Child Trust Fund account available in over 18,000 high street locations - four times greater than any other provider. Family's partnerships include the Post Office, Barclays, Sainsbury's Bank, Bounty and Coventry Building Society, Bradford & Bingley, Clydesdale Bank, Northern Bank, Yorkshire Bank , Early Learning Centre.

- In March, Family won a prestigious Parent Friendly Award from the baby charity Tommy's as 2005 'Best Long Term Children's Plan Provider’ for the second consecutive year.

- Family Investments is authorised and regulated by the Financial Services Authority.

Press Contacts:

John Reeve, CEO, Family investments, on 01273 725272
Miles Bingham, Marketing Director, Family Investments on 01273 725272
Adrian Warr, Senior Account Manager, Hill & Knowlton on 020 7973 5947

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