Savings account or CTF?

[Grumpla]

I'm not sure whether to save regularly into my son's CTF, or into a normal savings account.

CTF just makes me a bit nervous - I was a right daft git when I was 18 and probably would have blown the money on cider rather than use it for anything sensible.

If I put the money into a savings account I can wait until he shows signs of responsibility to hand it over... but would I be tempted to dip in for other stuff?

But given crap rates etc is that just pointless? How do you decide whether your three-month-old baby will be sensible with money or not?!?!?

How have other people decided? Should I put a bit in one and a bit in the other?

i'd just stick with a savings account. dd has just got a savings account, she was born pre-ctf but ds got one, and after threads on mn, i went with a place called children's mutual. we've never added to it though, as i decided to open a savings account for him too and put money into that instead. good job as the savings account is still there and earning interest, the ctf however has lost money during the credit crunch.

I'm putting my dc's savings in a separate trust fund that they only get when I say so . Giving 18 year olds a pile of money is a daft idea. I know, I was 18 once and had access to some savings, it all got frittered away.

i got some money when i turned 17, used it for driving lessons.

Meglet - is it more complicated to open a trust fund than a regular savings account? What's the difference?

Lucykate - can only hope he is as sensible as you more sensible than me, I still can't drive (failed my 2nd test just before I had him)

IIRC we used the National Savings bonds. They can be set up as a trust fund and kept until the holder thinks the child / young adult is sensible enough to have it, whether that be 18, 21, 25, 30 etc. I think they might earn more interest / pay less tax in a normal CTF, but if there's a chance they would blow a CTF I'd rather take the hit on interest / tax.

lucykate I wish I had been as sensible as you . My lesson has been well and truly learnt!

Ace, I will look into those then thanks.