Talk

Advanced search

Mumsnet has not checked the qualifications of anyone posting here. Free legal advice is available from a Citizen's Advice Bureau, and the Law Society can supply a list of local solicitors.

Child trust fund ! Where should i put it ? please help !

(38 Posts)
pinkdiamond Sun 30-Jan-05 23:07:38

Message withdrawn

misdee Sun 30-Jan-05 23:08:20

i'm the same pinkdiamond. saviungs for us, think i'll just go with abby as the kids savings accounts are already there.

MunchedTooManyMarsLady Sun 30-Jan-05 23:09:20

I'm so glad that you posted this as my vouchers are due shortly. I was talking to DT2s godmother and she gave me an article from the Telegraph that says that shares are the best way forward. I don't have a clue and so I'm hoping that some very wise mnetters can give you and I some very good advice.

tammybear Sun 30-Jan-05 23:12:26

Im expecting mine soon too, but havent heard anything about shares?

misdee Sun 30-Jan-05 23:13:58

3 types of account available, savings, shareholder or stockholder i think.

MunchedTooManyMarsLady Sun 30-Jan-05 23:14:37

apparently you can put them in a savings account or a share based account where they play the stockmarket (correct me if I'm wrong somebody). I'm still rather confused about the whole thing.

tammybear Sun 30-Jan-05 23:15:13

sounds confusing. think i might just stick with savings, cos i know what thats about!

pinkdiamond Sun 30-Jan-05 23:21:48

Message withdrawn

pinkdiamond Mon 31-Jan-05 17:57:01

Message withdrawn

nutcracker Mon 31-Jan-05 18:01:53

If you put it in the barclays one you get a junior savings account too i think.

I have had my info pack about it all but no voucher as yet.

pinkdiamond Mon 31-Jan-05 20:48:40

Message withdrawn

frogs Mon 31-Jan-05 21:10:41

I haven't had dd2's voucher yet, but hopefully will soon.

For seriously good, impartial advice on saving and investing for children, check out The Motley Fool's Investing for Children section. They also have a discussion board on the same topic, where you can read other people's queries and post some of your own.

To summarise the line they tend to take: over a long period of time (10-15 years+) it is very likely that shares will outperform cash-based investments such as savings accounts. A cheap and easy way into shares is through so-called index trackers, which are funds that buy a basket of shares that make up the most popular indexes of the UK stockmarket -- either the FTSE100 (the 100 biggest shares -- vodafone, glaxo, HSBC etc etc) or the FTSE all-share (which has the biggest ones, plus some smaller companies as well).

An index tracker has no fancy upfront fees (avoid anything with an initial fee) and a low annual fee (less than 1%), and the value of your units will simply follow the value of the index up (and down as well, but over the LONG term, it should be up).

hth

pinkdiamond Mon 31-Jan-05 21:17:55

Message withdrawn

wild Thu 03-Feb-05 20:34:55

Wish you could spend it now tho

SeaShells Wed 23-Feb-05 15:09:47

Just got mine through, what have people done with theirs then?

elliott Wed 23-Feb-05 15:22:44

HAven't had ds2's yet but will probably put it in the co-op ethical fund - apparently the only 'ethical' one on the market. I'm not absolutist about ethical criteria but do feel uncomfortable investing in tobacco companies and arms related companies in particular. And it makes the choice simpler! But I should read frogs links first I guess...
What I haven't decided is whether to top up the fund or open a different one to put some additional funds in. And what to do for ds1. We haven't really got any dedicated savings for them at present that are separate from our savings.

Gem13 Thu 24-Feb-05 15:33:06

elliott - was just about to post on this. I can't believe there is only one ethical option. Mind you it does make the decision process easier!

cornfield Thu 24-Feb-05 15:40:42

here's the telephone number to start your Child Trust Fund Account 0800 169 7500

It's with Family Investments and you can pick up a leaflet in your Post Office about it or visit www.postoffice.co.uk/savings

You can invest up to £1200 a year, when your child is 18 they can withdraw the money and it's tax free. YOU CAN'T open it into any other account, not even an Investment account with the Post Office.

Pamina3 Thu 24-Feb-05 15:46:16

Message withdrawn at poster's request.

cornfield Thu 24-Feb-05 15:51:32

not sure, but it does say on the leaflet that this is free of income tax and capital gain tax, so if you don't pay tax on it, then surely you don't have to include it on your tax rebate form??

MrsBigD Sun 06-Mar-05 07:28:41

I've done the deed and applied for a CTF account at HSBC. The reason... well our other accounts are there, it's a huge bank so hopefully won't go bancrupt in the next 20 years and they're international in case we finally do emigrate to Australia

throckenholt Sun 06-Mar-05 08:16:05

you have to look at the small print - many of them want you to add a regular amount - such as £10 per month. If you just want to put in the voucher and then forget about it there are not many choices.

The problem from my point of view is you can't get the money out until they are 18 and then it goes straight to them. I would prefer to keep our saving s where we can get at them if we need them - say at 16 for something for them.

The Abbey National savings CTF account seems to be one of the best no strings savings account with a pretty good interest rate.

MrsBigD Sun 06-Mar-05 08:26:46

but wasn't the reason for getting good interest rate with abbey that you put in a certain amount per year as well?

What we're probably going to do is save money for BOTH kids in a separate account anyhow. But as we have to used the CT we thought we keep it with HSBC and as far as I can tell it's voluntary whether we pay extra or not. Better read the small print again. Have 10 days to change my mind

Chooch Sun 06-Mar-05 08:33:13

Hello - can anyone recommend a good STAKEHOLDER account for a Child Trust Fund ? Anyone a financial expert ?

There is lots of info. and comparison tables on savings accounts on the internet, but as these do not grow as well, I want to go for the share-based STAKEHOLDER account.

From what I have seen the STAKEHOLDER offers from different banks are not very different, so would you simply go with a "name" - i.e go with HSBC because its a huge global bank rather than one you have never heard of (there are a few on the list that provide CTF's that I have never heard of !!) ??

throckenholt Mon 07-Mar-05 07:58:36

MrsBigD - probably - I looked at loads and got really confused - I thought I had decided the Abbey was one for us (just want to stick the voucher somewhere, no extra) - but that was weeks ago. The vouchers (I have twins) are still sitting by the computer reminding me I should be doing something about them .

Join the discussion

Join the discussion

Registering is free, easy, and means you can join in the discussion, get discounts, win prizes and lots more.

Register now