Half of all Child Trust Funds (CTFs), issued by the government for every child born after August 31st 2002, have so far gone unused says Nationwide Building Society.
Almost one million of the £250 CTFs remain to be cashed a year after their launch, despite widespread publicity for the scheme.
The funds were set up to ensure that all children have the best saving account earning interest for them while they grow up.
The government is now preparing to invest the vouchers itself on behalf of parents who have not claimed on behalf of their children – meaning they will miss out on a year’s worth of interest payments and the chance to choose what sort of account to use.
“Parents have a vital role to play in demonstrating to children the importance of saving,” said a Nationwide spokesman.
“Mums and dads can help children look to their future and consider how best they use their child trust fund.
“Whether it will be put towards education, a first home or a wedding we believe the child trust fund will assist young people in understanding the value of savings,” he added.
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