More families are saving for their baby's future despite the recession.
|Contributions paid into Child Trust Funds (CTFs) have reached a record high, according to the latest quarterly survey from the Tax Incentivised Savings Association (TISA).
The research found that between December 16th, 2008 and March 15th, 2009 regular monthly payments credited to CTF accounts hit £14.8 million, with lump sum contributions topping £105 million to date.
Compared to the previous quarter, 17,157 more parents set up monthly direct debit subscriptions, rising to 588,558.
What's more, average monthly payments increased to over £25 - almost £5.35 more than in August 2006.
Commenting on the surge in CTF savings, TISA director general Tony Vine-Lott said: "Our survey confirms that the CTF success story is continuing into 2009.
"It is a testament to parents' desire to give their children the best possible financial start when they reach age 18."
All children born on or after September 1st, 2002 receive £250 from the government to activate their trust fund account.
In the 2009 budget the Chancellor accounced that an additional Â£100 a year will be contributed into Child Trust Funds for children with disabilities, and an extra Â£200 for children with severe disabilities.