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 !!) ??
Hia Chooch- i'm the same as you- no answers sorry but i know that i want to put the money in stakeholder. The good thing about this is that I've decided to do something with other monies that she has rather than just leave it in savings accounts (not the horses btw )
I'm putting mine into a tracker fund. I have noticed from the information that L&G are doing one (and I quite like Legal & General's funds) however the way to invest through the CTF source seems to add an extra 0.5% management fee so I am going to ring round directly on Monday
I am going to call L&G, Virgin and Invesco Perpetual I will post what they say
If anyone else wants to investigate tracker funds could you post back their fees (as this is the key determinant ie the lowest fee wins)
maybe together we can crack this?
(I am not an FA or financial person, but am quite financially astute I feel)
Wow - everone up on a Sunday morning thinking baby money like me !
Me too, I am a lawyer, so quite financially aware, but most certainly not an expert. Also rubbish at adding links on MN Could someone tell me how to do a link here, I have a few things I can share with you, although let's keep going on this thread until we all feel happy with our stakeholder choice ! Thanks so far.
Mud - you make an excellent point about just going the tracker route. I was considering switching what I have already saved for baby in his child savings account (before CTF existed) into a tracker. So may also put his £250 into a tracker instead of going the CTF stakeholder route. I agree that 1.5 % is too much. I am sure I have seen trackers that charge far less. The FSA website has comparison tables. I would like to do links here, but don't know how to ? Help !
do you all think it would be worth sending a letter to number 10 about our concerns about a lump sum landing in our little darlings 18 yo hands? Like others I have concerns that my gorgeous darlings may have their heads turned with a nice sum and spend it on a kilo or something.
MTMML - lol
I am keeping our savings separate too and putting this small amount in a standard account, more options and control that way. I am annoyed that so many companies just see this as a way of grabbing our childrens cash. Felt really patronised at Barclays when I went in to get the up to date info - offering a small stuffed toy as if that would make up my mind for me...How thick do they think parents are?
So, if I'm following the herd (you guys that is ) which account should I open to save that is NOT a CTF but one that I can guide (control lol) when my gorgeous darlings are 18? Also I need it to be one that I can't get my hands on until they are 18, otherwise I'll use it for other things (all very noble you understand).
ooh yes, Mud - I wasn't thinking about them blowing £250, it was the added money etc that I was thinking of. I had such visions of uni fees being paid, or cars bought or flat/house deposits paid, then someone said that as the babes themselves get the money directly... well that was my mind gone up the path of nightmares...
I'm watching this thread with interest. DDs voucher has just come through, think I want to put it into a Stakeholder ctf. Not that I'm grateful for the money to be given to DD but wish they had decided to do something a bit more worthy with it. She has her own savings account, which I will continue with. Just think about the amount of money they have spent out and wouldnt it be better to put all that money into Education, there it will make a difference and all children will benefit. What will £250 be worth in 18 years time!. She has more than that in her own savings account anyway. OK, we are fortunate and not all children have savings but still think all children would benefit if they money was put into education or something similar. Ok rant over now, just need to figure out what to do with it.
Marslady you cannot control the CTF that's the point it goes to the child once they reach age of majority, you can just invest it in the best plan you see fit and then ignore it
other money you want to save for them, I would personally suggest if you don't use up your ISA allowance to put it into a tracker ISA with a low fee and just ignore it (you cannot ring fence it but you can discipline yourself to ignore it )
you could I suppose set up a trust for your child but that involves solicitors and legal fees and prob. not worth it (I wait to be corrected)
listen to me .I have a savings account for DS that is in the closest BS and that's about it, I sound so sorted though need to follow my own advice that's what I need to do
I think the problem with the standard tracker is that it is tax-deductible (unless you wrap it up in an ISA), whereas the CTF is taxfree. But the limit on an ISA is £7,000. So it's still worth paying the 1.5% on a stakeholder CTF (the Govt. has put a cap on the charges, so noone can charge more than 1.5% on a CTF) if you are going to invest the max. of £1,200 per year.
I have emailed an IFA for help, so may be able to tell you more once he gets back to me.