In the last quarter of 2008 up to December 15, monthly direct debit contributions into Child Trust Funds increased to an average of £22.10, compared to £21.99 in the previous quarter, the tenth successive increase since the TISA started monitoring the data in 2006.

While the average amount paid into CTFs grew only marginally, there was a more significant increase in the number of people setting up regular payments by direct debit, which rose by 22,549.

The number of Child Trust Funds to receive a lump sum deposit also rose, up from 166,021 in the previous quarter to 195,356, but the fourth quarter average lump sum average fell from £471 to £508.

“CTFs continue to buck the savings trend as parents invest in their children’s future and I am particularly encouraged by the increase in the amount of regular savings.” said Tony Vine-Lott, TISA director general, commenting on the survey’s findings.

“Even at the current average direct debit subscription level the CTF should amass in excess of £5,000 after 18 years. This will be a tremendous boost to a young person beginning their adult life.

While he is encouraged by the increase in subscriptions, Mr Vine-Lott added that there is still scope to increase the number of contributions made to bring them up to the maximum level which can be invested, which is £1,200 a year.

He also reminds people that it is not just parents of children who can invest in their financial future, but grandparents, other relatives and friends of the family can also make a valuable contribution, either regularly or with lump sums.

Deposits rise considerably over the Christmas period, Mr Vine-Lott said, which will be reflected in the TISA’s next quarterly report.

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