CTF discussion area

Aloeabundance · 24 February 2005 at 1:08PM

Thanks a lot! Good to know.

'Scuse my ignorance...

When you get the cheque, what happens?

I'm clueless!

Though I guess it comes with a whole bumf of info.

Love
Natalie

Spendless · 24 February 2005 at 1:22PM

Just dug out daughters cheque and letter. I haven't done anything with it yet as i was waiting for Martins article.

It gives a website https://www.childtrustfund.gov.uk and a helpline number 0845 302 1470.

I also had some info about where it could be deposited on something seperate (can't find it at mo- think hubbys had it!!).

The voucher expires in 12 months but i understand if i don't do anything with it it gets invested in something by the government.

Sorry - just realised didn't answer your question- you take the cheque to somewhere that is operating one of these accounts to open it up with. We haven't done this yet because as i said earlier i was waiting for Martins article. We don't have a couple of the BS that Martin mentions here,so not sure where to put it at present.

carpool72 · 24 February 2005 at 2:41PM

My daughter's 20 months & I got my cheque a couple of weeks ago too - I'd guess that there'll be a wee bit of a backlog for new babies. Got some info packs from Nationwide and Childrens Mutual but was waiting for Martin's words of wisdom so I guess I'll do a quick compare on these 2 now. I won't be putting much more in though - I'd rather save my cash somewhere I can control. Even £10/month adds up to a couple of thousand plus interest over 18 years & that's a good chunk of money to me. Although I do live in hope that I'll manage to bring up a responsible young woman who respects her old mum's wishes!

caspertheghost · 24 February 2005 at 4:32PM

Being in the lower income bracet, I received a voucher for £250. Having read booklet, I understand that people who have income below £13,000 are entitled to £500. Being well below this threshold, I do not know if you get a top up woucher or not? does any one know what happens.

isasmurf · 24 February 2005 at 8:38PM

Aloeabundance wrote:

I have a 3 year old and a 4 month babe - I haven't received info yet...

How do we spur things on?

For children born between 1st September 2002 and 31st March 2003, vouchers began to be issued on 17th January

For children born between Arpil 03 and March 04, vouchers began to be issued on 7th February

For children born between April 04 and December 04, vouchers began to be issued on 21st February

Vouchers should have been received for all children born before January 05 before end of the April

For children born since January 05, you should receive your voucher before the end of May, or one month after you first received Child benefit

caspertheghost wrote:

Being in the lower income bracet, I received a voucher for £250. Having read booklet, I understand that people who have income below £13,000 are entitled to £500. Being well below this threshold, I do not know if you get a top up woucher or not? does any one know what happens.

I believe (though not 100% sure) that you need to be claiming Child Tax Credit, or a children's allowance in another benefit, to qualify for this extra payment. Also the qualifying income is based on the household income and not the voucher recipients income.

I think the additional payment will be paid directly into the account, I'm not sure if it shows up on the voucher. I haven't seen any mention that it is shown on the voucher.

katglasgow · 25 February 2005 at 11:30AM

Have been changing my mind again and again about whether to go for deposit or investment, but like other parents slightly concerned about what my darling son would spend the money on at 18 anyway! I have decided to just put the £250 into the SKipton account at 5.5% interest and add his birthdasy money into here also. When he starts school - and I can stiop paying £600 per month in nursery fees! - I'll start a regular standing order savings account with something like the Halifxa regular saver - currently 7% interest that way I can ensure the money goes on university fees and not budweiser!

newnhak · 25 February 2005 at 11:31AM

Hi

I was wondering if anyone is going to take the Shares CTF option and has decided where they are putting their money?

I want to buy shares as the £250 is money we wouldn't have otherwise had so I'm happy to take the risk and invest.

If you can give any advice as to what to pick I would be grateful.

thanks

Karen

Aloeabundance · 25 February 2005 at 12:13PM

That seems fun - I look forward to what people have to say!

What a great idea.

Thanks Karen.

Tempest_3 · 25 February 2005 at 2:50PM

Why the government did not develop the product so one could split the investment between cash and shares is a mystery (mini and maxi CTF's might have been a good idea).
Reading the previous articles on risk vs return makes the whole CTF investment sound like a minefield. I have decided on the following and indicated the reasoning, hopefully someone will find it useful...

The money given by the tax payers (sorry, should that be government) I will put in a stocks CTF thereby having the potential of a good return with little/no risk to any money I have paid myself. I shall also start a cash (probably Alliance and Leicester First Saver account) and try to put in regular amounts, thereby having a low/no risk (depending on your point of view!) saving that will produce a reasonable growth over the number of years it might run for. I might decide to top up the CTF as and when I can with a view to boosting this, but not at the expense of the guaranteed cash in the savings account.

One of my reservations about the CTF's is that once the child reaches 18 and it is cashed in, the government are likely to immediately view this as taxable and any University/college/A-level grants or whatever means tested educational supplement there might or might not be at that time could be reduced as they have got savings that could have potentially done well over 18 years, or is that being too cynical
:-)

deefadog · 25 February 2005 at 9:01PM

Just got our pack today, i am still a little confused at this point on what to do, currently and for the last 4 months we have the A&L account in which the tax credits (I think it's the tax credits, the one which gives you £16.5 per week) £66 per month are paid directly into my daughters account, I make this up to £100 per month via DD.

It would have been nice to put the Voucher into this, but you can't

I too am a bit concerned about her blowing the cash when she is 18! But to let £250 just sit there even after 18 years is not going to amount to much, but on the other hand i don't want to add to it!

Any advice or am i in a catch 22 position?

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