Children’s savings more important than ever, says Ulster Bank

28th April: The recent ending of Child Trust Fund contributions shouldn’t discourage Northern Ireland parents from savings for their children’s futures, a leading local bank urges today.

Ulster Bank says that giving children a financial head-start in life is now more important than ever, with many of the costs they may face later in life, such as university tuition fees, set to rise.

The bank says that with a new tax year having commenced, many people are currently examining their finances, and that making provision for their children’s futures should be high on their list of priorities.

“Saving for your children will help put them on a good footing for later in life, and will help them learn good habits at a young age,” points out Stephen Cruise at Ulster Bank.

“Parents who save regularly for their children, even relatively small amounts, will accumulate an important pot of money to help their children deal with things like the cost of further education and buying their first home when they are older.

“This will also help children learn about the value of money, and the importance of saving.”

Child Trust Funds were first introduced this time six years ago. They helped put the issue of children’s savings firmly on the agenda, and encouraged many parents to save. Stephen, who is Managing Director of Branch Banking, Private Banking and Advice at Ulster Bank says that, six years on, the ending of government contributions to Child Trust Funds shouldn’t have the opposite effect.

“There are still a wide range of options for parents to save for their children, including other tax free savings options,” Stephen points out.

“We think it is very important that parents who already have a Child Trust Fund continue to add to them, and that those with children born recently who don’t qualify, take advantage of some of the other options available.”

Government contributions to Child Trust Funds (previously £250 at birth and a top-up of £250 at age seven) ended in January, and Child Trust Funds can no longer be opened. However, tax free contributions can continue to be made to Child Trust Funds opened before the beginning of this year, until the child reaches 18.

Ulster Bank offers a range of savings accounts and plans which parents can use to save for their children's’ futures. From instant access accounts such as the Cash ISA Plus and Loyalty Saver accounts, to regular savings plans such as the Special Interest Deposit Account, through to medium and long terms savings plan which can be discussed at any Ulster Bank branch.

Parents can fill out an R85 form when opening their child's account and their child won't get taxed on the interest.

Further information about Ulster Bank’s range of savings accounts is available at www.ulsterbank.co.uk