Child Trust Fund contributions on the rise

  • Story by: Tabatha Bergin
  • Magazine: FTAdviser
  • Published Friday , July 04, 2008

Contributions to Child Trust Funds (CTFs) are on the rise according to a survey by The Tax Incentivised Savings Association (TISA).

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Despite the credit crunch, monthly contributions to CTFs have risen to an average of £21.86 a month, up from £21.20 this time last year.

The average lump sum paid in monthly subscriptions also increased by £84 to £488 in the second quarter compared with the same period in 2007.

The survey considers more than 2.25 million accounts opened by participating providers and shows that the amount of monthly direct debit subscriptions has risen by 27,198.

Tony Vine Lott, TISA director, said: “Bearing in mind the financial squeeze that is affecting so many families at the moment, the continuing increase in the level of regular savings into a CTF is particularly encouraging.”

“I would like to encourage more parents to commit to saving a regular amount to a CTF, obviously at whatever level they can afford.”



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