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Strong support for CTFs

January 25, 2010

TISA publishes its latest quarterly Child Trust Fund statistics

Latest figures from TISA – Tax Incentivised Savings Association – point to the continued strong growth for the Child Trust Fund (CTF).

In TISA’s latest quarterly survey, now representing 73% of all CTF accounts, the total number of accounts open had risen to 3,523,288. Of these, 708,042 had active monthly direct debit subscriptions totalling £16,223,791 per month.

Additionally, 265,176 CTFs have received a lump sum subscription to bring the total subscriptions to date in these accounts to £136,043,486.

Tony Vine-Lott, TISA Director General says:

“CTFs play a dual role in helping to improve the financial literacy of future generations and in providing a savings nest egg to assist young people meet the financial demands on them when they reach 18. The significance of these two factors must not be overlooked in any debate about the future of CTFs.

“It’s also important to remember that CTFs benefit all children regardless of their background and provide a recognised savings product that family and friends can contribute to on behalf of the child. The amount of lump sum subscriptions is an indication that money given as presents at Christmas and on a birthday is being put into the CTF. Savings into a CTF are tax free and up to £1200 can be contributed each year.

“For those children born before the CTF scheme started, I would hope that parents have established an ISA to make contributions into as the benefits of saving and engaging with the financial services sector during childhood should not be under estimated.”

TISA’s quarterly survey covers the period 16 September to 15 December 2009. Data is supplied by providers representing 73.35% of all CTF accounts.

Ends

For further information, please contact:

Tony Vine-Lott, Director General, TISA – Tel: 01372 374728, Mobile: 07790 006108
Email: tony.vine-lott@tisa.uk.com

Issued on behalf of TISA by Cauldron Consulting, contact: Steve Radford, Cauldron Consulting – Tel: 020 3178 7238, Mobile: 07889 903786. Email: steve.radford@cauldron-consulting.com

Notes for editors

Key figures from the most recent two quarterly reports are as follows (full reports are available on the TISA website www.tisa.uk.com):

Number of accounts open on participating date
to 15 December 3,523,288
to 15 September 2,985,318

Number of CTFs receiving active monthly direct debit subscription
to 15 December 708,042
to 15 September 641,717

Monthly rate of subscriptions
to 15 December £16,223,791
to 15 September £14,493,990

Average amount of monthly subscriptions
to 15 December £22.91
to 15 September £22.59

Number of accounts that have received a lump sum subscription
to 15 December 265,176
to 15 September 256,586

Total lump sum subscriptions to date
to 15 December £136,043,486
to 15 September £129,934,415

Average amount of total lump sum subscription
to 15 December £513 representing 73.35% of all accounts
to 15 September £506 representing 64% of all accounts