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Regular and lump sum CTF subscriptions increase

12th April 2010 Print

An increase in regular support for Child Trust Funds and £13m in additional lump sum subscriptions are the highlights of the TISA - Tax Incentivised Savings Association - latest CTF quarterly survey.

Covering the period to 13 March 2010 TISA's quarterly survey contains data collected from CTF providers of more than 3.5 million accounts, representing 73% of all CTFs.

According to the survey regular subscriptions into CTFs through active monthly direct debits have risen past the £17m mark each month for the first time, with average monthly subscriptions now at £23.14. The number of CTFs that receive direct debit subscriptions has grown to 739,602 - an increase of 31,560 on the previous quarter.

Lump sum subscriptions also rose in number and amount. A further 29,000 CTFs received a one-off cash injection during the quarter worth more than £13m in total - more than double the amount paid in during the previous quarter. The total subscribed in lump sum contributions since CTFs were introduced in 2005 now exceeds £149m.

Tony Vine-Lott, TISA Director General says: "I am particularly pleased that our message is getting through that money given as a gift can be put into a CTF. This survey covers the Christmas period and the large uplift in lump sum contributions is an indication that parents have saved presents of money into their child's CTF.

"It is often overlooked that CTFs are a recognised savings product that enable friends and family to contribute to a financial nest egg that only the child will be able to access and only when they reach age 18.

"This means that CTFs benefit all children regardless of their background and this, along with the role the scheme has in improving financial literacy, should be borne in mind in any debate about the future of CTFs."

Savings into a CTF are tax free and up to £1200 can be contributed each year. TISA's quarterly survey covers the period 16 December to 15 March 2010. Data is supplied by providers representing 73% of all CTF accounts.