You are here: Home - Saving & Banking - News -

CTF top-ups continue to rise

0
Written by:
08/04/2008

The latest TISA quarterly survey of Child Trust Funds (CTFs) shows that parents and relatives continue to increase savings for their children’s future, despite economic uncertainty.

The survey, which covered the period to 15 March 2008, provides insight in to the 2.14 million accounts opened by participating providers.

A further 480,000 accounts have been opened in the year since March 2007, with nearly 134,000 of these in the last quarter alone. Encouragingly, the average size of contributions from parents and family members through both regular Direct Debits and lump-sums registered increases on the previous quarter.

Average Direct Debit payments are up this quarter by 21p to £21.64, while the proportion of accounts being regularly topped up by parents making regular Direct Debits remained about the same as in the previous quarter at 23.3%, down 0.1%. Lump sum contributions increased by some 4.9% – with 132,260 accounts receiving an average of £472. This is a substantial increase compared to an average of £386 one year ago.
 
Tony Vine Lott, director general of TISA, said: “In our fifth CTF survey, we have found that parents continue to recognise that Child Trust Funds represent an, easy way to save for their children’s future.

“More parents are now increasing both lump sum and regular contributions. With the average direct debit contribution of £21.64 per calendar month, nearly a half million parents are following the Government’s example and contributing over £250 per year to their children’s future.

“We are continuing to work with providers and HM Government to maximise the participation and uptake of CTFs by parents. We were pleased by Government’s announcement in the 2008 Budget that a physical voucher will not be required to open an account. We hope that this will help to simplify the account opening process for new parents and their financial provider of choice.” 
 

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Customers unhappy with home phones

After a year blighted by hidden charges and price rises, home phone customer satisfaction has hit its lowest level since...

Close