All I want for Christmas…is a contribution to my Child Trust Fund
TISA – the Tax Incentivised Savings Association – is encouraging parents of children with Child Trust Funds to save gifts of money into the plan this Christmas.
Recent research from TISA* into more than 2.37 million Child Trust Fund (CTF) accounts – representing 62 per cent of the market – revealed that nearly 549,000 received monthly direct debit contributions, at an average of £21.99 per month. The average amount for those accounts receiving a lump sum payment was £508.
The maximum amount of tax free saving that can currently be paid into a CTF is £1200 per year.
Tony Vine-Lott, TISA Director General says:
“There is therefore still plenty of scope for parents to make lump sum payments into a CTF within the maximum limit. Family and friends will often give money rather than risk buying a present that may be unwanted, so Christmas is an ideal opportunity for parents to top-up CTF accounts and give their children a present that will grow in value over the years.”
CTFs are available to children born after September 2002; however there are a wide range of savings plans available to older children including customised accounts and ISAs.
“Parents are increasingly aware that having a pot of savings can give their children considerable advantages as they move into adult life” comments Tony Vine-Lott. “It’s never too late to start and whether this is through CTFs, or an alternative account, if we can instil the saving habit into young people now then they are more likely to carry on setting aside a portion of their income in their working life.”
TISA is endorsing the decisions announced by the Chancellor in the Pre-Budget Report to hold a National Money Week for school children next summer and that CTFs will form a focal point for financial awareness and maths teaching in schools.
Ends
*The research period covers the third quarter of the year to 15 September 2008 and provides an insight into more than 2.37 million accounts from data supplied by providers representing over 62% of all CTF accounts.
For further information, please contact:
Steve Radford, Cauldron Consulting – Tel: 020 3178 7238, Mobile: 07889 903786 Email: steve.radford@cauldron-consulting.com
Tony Vine-Lott, Director General, TISA – Tel: 01372 374728, Mobile: 07790 006108Email: tony.vine-lott@tisa.uk.com
Or visit:TISA’s website: www.tisa.uk.com
Email enquiries to: enquiries@tisa.uk.com
Notes for Editors
The Tax Incentivised Savings Association (TISA)
TISA is the premier trade association in the UK retail savings and investment industry. By engaging with member firms, government, political parties, regulators and consumer groups TISA’s ultimate goal is always to further consumers’ best interests. It seeks to improve the range, features and quality of savings and investment schemes available whilst at the same time encouraging more people to save for their long term financial security and peace of mind.
Uniquely, TISA is able to articulate the opinions of the whole savings and investments marketplace through its membership comprising over 120 member firms involved in the supply or distribution of products to the sector and its consumer interest. TISA’s remit extends across the broad spectrum of government sponsored savings and investment vehicles including:
• Individual Savings Accounts (ISAs)
• Child Trust Funds (CTFs)
• Savings Gateway
• Personal Pensions
• Investment Bonds
• Employer based pension schemes
• Wraps and platforms
• Other consumer-centric savings schemes and initiatives.
HM Government uses TISA’s market knowledge and ability to represent the views of both the savings and investments industry and consumers to help it to its policy in this area. Recent TISA successes include improvements to the ISA, the regime in which ISAs operate and simplification of the CTF.