CTF where to put my DDs money

[mum2b09]

I got my cheque from the child trust fund when my daughter was born and still havnt got round to doing anyhting with it. we moved and it just sort of got put in the draw on my to do list.

The thing is although i got the pack i really dont know where to invest the money.

Can i just put it in a savings acount for her and add to it?

Or do i have to put it in shares with risks?

I dont really understand it all would really apreciate it if anyone can simplify it abit.

Shes not over 1 so i can still decide where the money goes

thanks

I spent ages on this. Can't believe we actually got some money, so didn't want to waste it.

There are two kinds of child trust fund, cash and investments. Cash is safe but unlikely to grow much. Shares are higher risk but the potental growth is much more.

Most companies offer both kinds so you can choose. Or some allow you to split the money and put half in cash and half in shares.

I went for shares with mine because the world's stock markets are on their knees at the mo. I didn't think they could fall much further so the most likely way is up.

I went for F&C after looking at the "best performer table" in the Sunday Times but most banks and building societies do them.

You can add up to £1200 a year and any profits won't be taxed. Then your dc gets the money at 18. Or that's how it was. I don't think they've changed it yet.