Strong growth for the Child Trust Fund

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.