CTF saving on the rise, says report
By myfinances.co.uk staff
Regular and lump sum contributions to child trust funds (CTFs) increased during the three months to March 15th, according to a new report from the Tax Incentivised Savings Association (Tisa).
The organisation's latest quarterly survey, which covers data from providers of 3.5 million CTFs, showed that total regular monthly contributions to accounts via direct debits have broken the £17 million mark for the first time, with the average subscription standing at £23.14.
Overall, some 739,602 CTFs received direct debit payments during the quarter, up 31,560 on the previous three months.
Meanwhile, the number of accounts receiving a lump sum payment between January and March rose from 265,176 to 294,280.
The average lump sum contribution dipped slightly from £513 to £507, Tisa noted.
Since CTFs were introduced in 2005, the association said that these payments have totalled £149 million.
Tisa director-general Tony Vine-Lott said: "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."
All children born on or after September 1st 2002 are currently eligible for a CTF.
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