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.
The Nationwide Building Society has introduced half a dozen new investment bonds, with interest rates ranging from 6.5 to 6.7 percent.
The bonds cover investment periods of between 6 months and three years, therefore providing real options to suit different investors. Two of the new Nationwide Building Society bonds are e-bonds and are applicable to new FlexAccount customers while another one is valid only for customers who have been with the Nationwide for at least 3 years.
A spokesman from the Nationwide Building Society felt that the six month bonds offered an excellent return over such a short period of time and that the longer period bonds would prove excellent investment options for those happy to put their money to work for up to three years.
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.
