Regular CTF contributions on the increase
Regular and lump sum contribution levels into Child Trust Funds are continuing to increase in value according to the latest CTF quarterly survey by TISA – The Tax Incentivised Savings Association.
In the sixth TISA survey, average monthly CTF subscriptions rose to £21.86 per month (up from £21.20 for the same period in 2007), while the average lump sum subscription increased by £84 on last year to £488.
The survey covers the second quarter of the year to 15 June 2008 and provides an insight into more than 2.25 million accounts opened by participating providers.
During this quarter 112,335 new accounts were opened and the number of accounts with active monthly direct debit subscriptions rose by 27,198.
Tony Vine-Lott, TISA Director General, 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. However while the number of CTFs with a direct debit subscription now exceeds half a million, the majority of accounts still do not receive any form of top-up.
“I would like to encourage more parents to commit to saving a regular amount into a CTF, obviously at whatever level they can best afford. It’s vitally important that children see the tangible benefits of saving at an early age. It is less how much is saved, more that something is saved, that will teach them a lifelong lesson on how to manage their finances more effectively.”
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 Email: tony.vine-lott@tisa.uk.com
Or visit: TISA’s website: www.tisa.uk.com
Email enquiries to: enquiries@tisa.uk.com