ASDA part of the Wal-Mart familyASDA
Invis
Invis
Tuesday 29th April, 2008
You don't need to 'Bea' millionaire to get on the property ladder

 You Don’t Need to ‘Bea’ Millionaire to Get on the Property Ladder

-As Princess Beatrice Shops for £4.5 Million Mansion-

Last week, Princess Beatrice was seen out and about in Belgravia house hunting for a £4.5 million property, financed by a trust fund that matured on her 18th birthday.  Whilst, the fifth in line to the throne is in the fortunate position to have the backing of the royal coffers, ASDA is calling on families of more humble means to make regular savings into the Child Trust Fund (CTF) scheme to give children the best possible start in life.

Figures released from ASDA show that parents or family members investing just £20 a month into an ASDA CTF would receive over £8,000 on their 18th birthday and the sum increases to over £37,000 for monthly contributions of £100.   Such sizeable sums can give a much needed helping hand to finance their university education or get onto the property ladder. 

Monthly Direct Debit ContributionPotential amount received at age 18*
£10£4,700
£20£8,300
£30£11,900
£40£15,500
£50£19,100
£60£22,700
£70£26,300
£80£29,900
£90£33,500
£100£37,100

 Gev Lynott, Head of ASDA Financial Services comments: “Lenders are asking borrowers to stump up higher and higher deposits making it increasingly difficult for first time buyers to get on the property ladder.  Parents who take action now and invest a small amount each month will give their kids the help they need to make this first important step.”The ASDA Child Trust Fund is provided in association with The Children’s Mutual and as an added incentive parents receive a £5 ASDA gift voucher for opening the account or a £25 ASDA gift voucher if they set up a monthly Direct Debit contribution of £10 or more. 

The scheme allows payments into the account on a regular basis, either by regular Direct Debit or through one-off payments throughout the year or on special occasions like Christmas and birthdays.  By allowing contributions from wider family members and friends it is possible to build up a sizeable fund through a series of relatively modest monthly payments.  Many godparents and grandparents, for instance, also choose to invest and by pooling resources, families can reach the maximum contribution of a £100 a month to offer their child the best possible start in life.Customers who would like further details on the ASDA CTF can call 0845 900 0920 or apply online at www.asdafinance.com

Notes for Editors

Notes to Editors:* These projections are based on money being invested for 18 years in a stakeholder Child Trust Fund account, alongside the Government’s initial £250 voucher and another £250 voucher at age 7, with yearly growth at the FSA mid-rate of 7% and charges of 1.5% of the account’s value each year.  These figures are not guaranteed, shares can go down as well as up and the eventual lump sum could be more or less than indicated. ASDA Financial Services 

·         ASDA’s range of straightforward no-nonsense financial services helps you look after your family, home and belongings.

·         ASDA’s Personal Finance products include:  motor, travel, home, pet, life insurance, income protection and critical illness insurance, as well as a credit card. 

The Children's Mutual - Home of the Child Trust Fund

The Children's Mutual’s mission is to help families secure their children’s future. 

 

The Children’s Mutual is a trading name of the Tunbridge Wells Equitable Group.  The Children’s Mutual provides information about products of the Tunbridge Wells Equitable Group only.

 

Please note that The Children’s Mutual has a large database of case studies on children’s savings.

Background on the Child Trust Fund

 

Investment growth in the CTF account is free from Income Tax and Capital Gains Tax and at maturity, on the child’s 18th birthday, the proceeds are free from personal tax to the child (provided they are resident in the UK).   This favourable tax treatment exists under current legislation and may not be available in future. Government makes an initial contribution for each eligible child following registration for Child Benefit, and will make a second payment around the time of the child’s seventh birthday. It is currently consulting on the possibility of a third payment in early teenage years.



 

ASDA.com Copyright 2008