Top Child Trust Funds Article Discussion Area

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  • Rainmaker_uk
    Rainmaker_uk Posts: 531 Forumite
    Bizza123 wrote: »
    CTF Problems - Feeder account Issues - Help..?!!

    HI there. I'm a newbie to posting, and was hoping someone could tell me if I am being ripped off or not..I opened a CTF (in kid's name) with SelfTrade for my kid and got the £250 from the government as well as deposited £2500 to be placed in some sort of Unit trust for him. However when I went to place the trade I was told the total amount i could trade in the CTF was £1200 and the rest of the money would remain in the Feeder account.

    I asked if I could have the £1500 or so back as it was doing nothing in the Feeder account, and was a genuine mistake that we deposited too much. I was told NO..! I spoke to Govt CTF helpline, who said SelfTrade should not have accepted more than the total CTF yearly amount of £1200, but could do nothing to help me. Selftrade.co.uk are flatly refusing to give me the balance back.

    So what can I do..? There;s alot of money of mine that is now doing nothing, and I can't access. Does anyone know how I can get it back ? Or even if Selftrade are allowed to do this ?

    Thanks for any help....!
    B.


    Bizza - if this is the case then I would suggest that you start up a new thread with a relevant heading as due to the length and age of this thread you may not get the help you need.
  • cloud_dog
    cloud_dog Posts: 6,043 Forumite
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    Bizza123 wrote: »
    CTF Problems - Feeder account Issues - Help..?!!

    HI there. I'm a newbie to posting, and was hoping someone could tell me if I am being ripped off or not..I opened a CTF (in kid's name) with SelfTrade for my kid and got the £250 from the government as well as deposited £2500 to be placed in some sort of Unit trust for him. However when I went to place the trade I was told the total amount i could trade in the CTF was £1200 and the rest of the money would remain in the Feeder account.

    I asked if I could have the £1500 or so back as it was doing nothing in the Feeder account, and was a genuine mistake that we deposited too much. I was told NO..! I spoke to Govt CTF helpline, who said SelfTrade should not have accepted more than the total CTF yearly amount of £1200, but could do nothing to help me. Selftrade.co.uk are flatly refusing to give me the balance back.

    So what can I do..? There;s alot of money of mine that is now doing nothing, and I can't access. Does anyone know how I can get it back ? Or even if Selftrade are allowed to do this ?

    Thanks for any help....!
    B.
    Bizza, this is a very specific issue and I'm not sure people will be able to assist (SelfTrade are one of a very few who do self selected CTFs).

    We have a CTF with SelfTrade and my view would be that the CTF 'Feeder' account is similar to the 'dealing' account you need to open with ST before you can open a sef select ISA account, i.e. it holds cash you cannot deposit within the ISA, they take charges from there first (rather than removing money from within the ISA umberella). BUT... you can withdraw money from the account.

    If we assume this is reasonable and correct then there should be no reason why you cannot withdraw mony from the feeder account. The Government only stops money from being withdrawn from the CTF account itself and if you can get ST to agree that the feeder account money is not in an actual CTF account then you should be able to withdraw the money.

    Perhaps you need to request to speak with someone more senior.
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • Reaper
    Reaper Posts: 7,279 Forumite
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    mylifestory wrote: »
    i bank with both and wondered if there'd be any major difference in their ctfs - both stakeholder accounts
    The main difference is where they invest.
    HSBC UK Growth & Income Fund
    HBOS UK FTSE 100 Tracker

    Alternatively have a look at my opinions on the best CTFs in post 5 of this thread.
  • mylifestory
    mylifestory Posts: 23 Forumite
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    Reaper - so which is best?? I'm pretty savvy with money but this goes way above my head! 3rd option was the post office but prefer 1 of the 2 banks i'm with ....
    Rebecca
  • Reaper
    Reaper Posts: 7,279 Forumite
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    While I haven't looked at them in detail they look pretty standard. Being stakeholders they will charge 1.5%pa which is deducted from the growth.

    HBOS uses a tracker which follows the fortunes of the UK's top 100 companies. The HSBC one uses a fund where a manager decides where to invest (still UK only though). Looking at past performace there is not much to choose between them. The HSBC fund has done worse than the tracker in some years and better in others averaging out to the same.

    So choosing between them it really makes no real difference. However as I said before in answer to your previous post I wouldn't go with any of them. If you follow my link you will find my top picks in each category. Here it is again:
    http://forums.moneysavingexpert.com/showpost.html?p=34505779&postcount=5

    [I also replied to your PM]
  • mylifestory
    mylifestory Posts: 23 Forumite
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    family investments it is - done thru post office.

    thanks loads.

    sorting finances finally, loads to go ... ;-)

    Rebecca xx
  • win3
    win3 Posts: 2 Newbie
    Hi

    We have a 2 year old and pay maximum amount into CTF. Given therecent changes to CTF is it wise to continue investing. I am also worried that funds will stop working hard and as such think it may be a better decision to start investing in a different type of account. Can anyone recommend which might be best?

    thanks so much
  • Atfjgs
    Atfjgs Posts: 2 Newbie
    Hi
    I have two children already for whom I received vouchers for subsequently opened CTF’s. I am now pregnant with a third child who will not receive a voucher. Is it possible to amalgamate the two existing CTF’s and then divide any money between the three children on the 18th birthday of the youngest? Or, is anyone aware of any other options that will make it fair for the three of them?
  • cloud_dog
    cloud_dog Posts: 6,043 Forumite
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    atfjgs wrote: »
    I have two children already for whom I received vouchers for subsequently opened CTF’s. I am now pregnant with a third child who will not receive a voucher. Is it possible to amalgamate the two existing CTF’s and then divide any money between the three children on the 18th birthday of the youngest?
    No.
    atfjgs wrote: »
    Or, is anyone aware of any other options that will make it fair for the three of them?
    You would need to open a savings or investment account in the name of the third child and deposit the same amount as recieved in the voucher yourself.
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • chris_m
    chris_m Posts: 8,250 Forumite
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