Child Trust fund contributions defy the savings malaise
Once again the quarterly survey conducted by TISA – The Tax Incentivised Savings Association – has reported a continuing increase in both regular and lump sum contribution levels into Child Trust Funds. In spite of a sharp deterioration in the savings ratio over the last ten years, this is one area of the savings map where the trend is unrepresented.
In this seventh TISA survey, average monthly CTF subscriptions rose to £21.95 per month (up from £21.86 for the previous quarter), while the average lump sum subscription increased to £508 compared with £488 for the preceding three months.
The survey covers the third quarter of the year to 15 September 2008 and provides an insight into more than 2.37 million accounts opened by participating providers.
From mid-June to mid-September the survey registered that 118,788 new accounts had been opened, whilst the number of accounts with active monthly direct debit subscriptions rose by 23,817.
Tony Vine-Lott, TISA Director General, said:
“This is very positive news and genuinely encouraging for the long term take-up of Child Trust Funds.
More and more parents are recognising that their children will have a better start as young adults if they have some savings behind them. This is something that other family members and friends can help out with too, either through lump sum contributions or a commitment to regular savings.
This is one trend we can hope will continue for a long time – long enough to set an example for the next generation to follow.”
Ends
Notes to editors:
TISA is the leading trade body for CTFs and tax incentivised savings. It has worked with the Government to develop and implement the CTF. This is the sixth quarterly CTF survey it has conducted and is compiled from data supplied by CTF providers representing over 62% of all CTF accounts.
TISA wants to remind parents and their families that every eligible child could benefit from tax free saving of £1200 per year to build into a nest egg for them when they reach 18 years of age.
If parents have questions or concerns, they should call or contact their CTF provider or contact the Government’s information helpline on 0845 302 1470 or by visiting http://www.childtrustfund.gov.uk/.
For further information, please contact:
Anne McMeehan, Cauldron Consulting – Tel: 020 3178 7237, Mobile: 07764 184384 Email: anne.mcmeehan@cauldron-consulting.com
Tony Vine-Lott, Director General, TISA – Tel: 01372 374728, Mobile: 07790 006108