Child Trust Fund - a few Qs

[TooTiredtoGoogle]

How much do you think would be a good amount for them to have in it by the time account matures? At first, I was thinking £18k, but just wondering if I would trust an 18 year old with that amount ... and then wondering if £18k would be very much at all in 15 years time?

Also, we are expecting a second child - we would like to open a similar account for her. Can you still open Child Trust Fund accounts, even though you don't get the cheque from government?

And thirdly, now that CTFs have been abolished, should we be looking to move our Child Trust Fund account to a savings account which can only be accessed by our child when she turns 18?

TIA

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How much do you think would be a good amount for them to have in it by the time account matures? At first, I was thinking £18k, but just wondering if I would trust an 18 year old with that amount ... and then wondering if £18k would be very much at all in 15 years time?

• how much, is a how long is a piece of string (sorry to be blunt). i am tempted due to tax savings to max it but....see below

• exactly the reason why i am not investing all my money in the CTF for my child. dont want he will do with it when he has access

Also, we are expecting a second child - we would like to open a similar account for her. Can you still open Child Trust Fund accounts, even though you don't get the cheque from government?

• no more CTFs, Junior ISAs coming out in late 2011 would be your best 1st step. they should have the same attributes as CTFs (minus govt contribution)

And thirdly, now that CTFs have been abolished, should we be looking to move our Child Trust Fund account to a savings account which can only be accessed by our child when she turns 18?

• CTFs will continue for now. there is an argument that some firms will not be bothered to ensure they perform well. best thing is to monitor over next few years

Mine has made a thrilling £21 in the last four years so unless you put more cash into it, don't expect much in the way of returns :o

you can't take your money out of the CTF (set up by labour) you can move it around providers but the money stays. I wouldn't add any money to a CTF account - invest yourself elsewhere and then hand out the money to your kids as and when they need/can use/deserve it etc etc

Thanks akster.
Went into Nationwide today and they told me that you couldn't open CTF accounts anymore, and there wasn;t anything similar. Made me think that I should stop putting money in. We are expecting a DC2 and I don't think it's fair that the first DC should have an account that only she can access at 18, but not the other.

Good to know about the Junior ISAs - will look out for them. Then both DCs would have the same account / interest rate, etc.
Do you know if we'd be able to transfer DC1s CTF into a Junior ISA? And does Junior ISA work on same principle that DCs can only access when they are 18?

This is the Treasury press release on junior ISA's money is locked in until the child reaches adulthood. no info on allowing transfers from existing CTF's though so looks unlikely.Bear in mind you child's wealth may affect any grants/ bursary's for further/ higher education if they are means tested.

Thanks DrJones
I might just give the Treasury a call to see if I can find out a bit more.
Think I'm also going to stop paying into DD's CTF account.
Is that what everyone else is doing?

I have a CTF that is invested in an Invesco Perpetual fund. Whilst the actual CTF product is being discontinued the fund will still continue to exist other products also use it their only restriction is to move the money gradually into blue chip once DD reaches 13.