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.