The Nationwide Building Society informs us that people are losing around GBP248 million through expired or unpaid Child Trust Fund vouchers.
According to data gathered by them a quarter if the vouchers have expired while over 40 percent of the valid ones have not been used so far this year. In financial terms this, said the Nationwide Building Society, means almost GBP13 million each year is being lost in interest earnings alone.
A further word of caution came from a Nationwide Building Society spokesman who explained that if a suitable provider is not chosen by the parents then the government can allocate one for them, though this may not be in the best interests of the child. Child Trust Fund Vouchers are an excellent tax efficient savings vehicle and it is a shame more people are not using them.
According to information from the Abbey National savings division the people of the UK have been putting their money away to pay for a summer holiday, with Europe being the most popular choice.
With the value of the pound dropping against the Euro this means that summer holidays will cost more this year, meaning consumers need to save more for their break. With the average holiday costing over GBP1,600 it is good that the people of the UK have been saving their money to cover this cost, although a small percentage will be using their credit cards to pay.
The monthly cost for the average holiday is a little under GBP140, which could have earned the full amount needed in one of the excellent Abbey National savings accounts.
A Sainsburys Bank spokesman feels that there are more restrictions and conditions applied to savings accounts than ever before.
Having looked at the current state of the market the Sainsburys Bank spokesman has noticed how many savings accounts have restrictions on withdrawal amounts and periods, as well as how it impacts on interest rates, with some quite hefty penalties on some for making withdrawals during the year.
Another aspect that has been noted is the use of age limits on some savings accounts, targeting either the younger or older market. Ideally all categories of customer should be able to enjoy similar levels of interest and benefits believes the Sainsburys Bank spokesman.
