CTFs could give children an £8,000 birthday present
Investing £20 a month into a Child Trust Fund account (CTF) would enable the child to receive over £8,000 on their 18th birthday, according to ASDA.
Investing £100 into ASDA’s CTF would increase the figure to over £37,000. CTFs are government-backed savings accounts for children. Every child in receipt of a child benefit is eligible to have an account and the Government donates a £250 voucher to the child’s parents, with which they can open the account at a number of providers.
Gev Lynott, head of ASDA Financial Services, said: “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.”