Child Trust Fund contributions hit record highs

15 April 2009 / by Rebecca Sargent
Child Trust Fund contributions are at their highest ever level, research from the Tax Incentivised Savings Association (TISA) has revealed.

The survey, which covers the first quarter of the year, found that regular monthly Child Trust Fund subscriptions have hit £14.8million, while lump sum payments to date have exceeded £105million.

Overall, TISA found that the number of active monthly direct debit CTF subscriptions rose to 588,558, up from 571,401 in the last quarter of 2008. The average amount put away each month also rose to £25.18, up £3.08 on the previous quarter.

In addition, the survey found that the average lump sum contribution into a Child Trust Fund reached £518, up from £471 in the last quarter of 2008.

Commenting on the findings, TISA director general Tony Vine-Lott said: "Our survey confirms that the CTF success story is continuing into 2009. However, to set record levels for contributions given the current economic climate is unexpected. It is a testament to parents' desire to give their children the best possible financial start when they reach age 18."

According to TISA, the introduction this tax year of the voucherless Child Trust fund opening process, which allows for an entire online application process, will help to increase take-up of Child Trust Funds even further.

Mr Vine-Lott added: "For whatever reason, parents often failed to submit the voucher to complete the online application.

"The new regulations allow parents to open the account online using their child's unique CTF number. This is a good move and will also encourage parents to use the internet to manage CTFs."

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