CTF contributions still rising - Savings - News - Moneyfacts

News

CTF contributions still rising

CTF contributions still rising

Category: Savings

Updated: 12/10/2009
First Published: 12/10/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Monthly contributions by parents to child trust funds have increased in the last three months, with an additional 30,000 accounts now receiving direct debit subscriptions, the latest research from TISA (Tax Incentivised Saving Association) has revealed.

It means over 640,000 child trust funds now receive regular monthly contributions, worth in total in excess of £14.4 million. The figure also represents an increase of more than £800K on the previous quarter; impressive at a time when many families' finances are feeling the squeeze.

Since their introduction, almost one in three (30.8%) child trust fund accounts have received some form of additional subscription, either via a monthly direct debit or a one off lump sum.

Meanwhile, more than one in five (21.5%) accounts now have a monthly direct debit in place, with the average amount contributed having increased to £22.59, up from £22.38 in the previous quarter.

"Despite the challenging economic situation, it is encouraging that contributions to child trust funds are continuing to rise," said TISA director general Tony Vine-Lott. "Understandably, the increases are currently at a modest level, but it does confirm that parents see the value in providing their children with a financial nest egg when they reach 18."

With the introduction of the second child trust fund payment in September for those reaching their seventh birthday, Vine-Lott added he was confident that interest will have been stimulated further.

"I hope that families will use this as an opportunity to reinforce the message about money awareness as part of the broader efforts to improve the financial literacy of young people."

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Savings being used as a festive financial buffer

Good news from RCI Bank UK – its latest research shows that many of us are saving more than we were a year ago, but the question is, will you be dipping into that buffer to cover the cost of Christmas?

6 of the best easy access savings accounts

Easy-access savings accounts are as simple as they sound – they allow you to access your money whenever you need it, without having to give advance notice, and they also allow you to pay into them at any time. Here are six of the best.

Start saving for Christmas… 2017!

Christmas is just around the corner and our annual festive splurging is starting to step up, but are you prepared? It may be too late to start saving for this year’s festive spend, but it’s never too early to start for next year’s!
 
Close