The Government proposals to provide children with a trust fund at birth could be worth up to £300m...
The Government proposals to provide children with a trust fund at birth could be worth up to £300m a year, according to e-commerce services company, My Money Adviser.
The group is predicting that intermediaries will benefit as parents will have to decide which financial products are the best for their children.
The Government has also suggested a child trust fund scheme in which every child born receives up to £800.
The consultation paper has proposed a match-contribution scheme, potentially offering £1 from the Government for every £1 contributed by parents up to £600 per year. Savings can then be moved to an Isa, pension or other vehicle.
In an example case study from the Treasury it estimates an individual who earns less than the threshold for eligibility, opens a Saving Gateway and saves £25 a month for three years.
When the account matures, the value of the individual's Saving Gateway will be £1,870 in real terms adjusting for future inflation. This total comprises £900 of the individual's own contributions and £900 of matching contributions and £70 interest.
Anne Marie Martyn, managing director of My Money Adviser, said: "This could be a good opportunity for all financial advisers to get clients early on."
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