Trust fund

[justanotheruser18]

What is a trust fund? How does it differ from a savings account?

Also, how much do you save for your child/children each month?

I'm no expert but I have a child trust fund for DC. Save 75 a month. You have a fund which is invested in stocks and shares so your return I'd based on how the market is performing. So there is a risk and the stockmarket can go down as well as up etc etc but the risk is reduced as it's seen as a long term investment.

Our trust fund has grown by £3,500 over 8 years, so out performed high street savings interest rates.

Thank you @Madonnasmum.
Amazing investment so far it seems.

A trust is just a legal construct, it isn't anything in itself. Unless you're talking child trust fund from the government I can't see why you'd have one like the PP has suggested. The tax rules and investments you can hold are complicated and restrictive.

Sorry misread. The CTF frim the government isn't a 'trust' as you would usually encounter. It is money held 'on trust' for the child, but they were a government scheme. You can do exactly the same (and cheaper i.e. better returns) with a Junior ISA.