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Top Child Trust Funds Article Discussion Area
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Old 01-09-2009, 6:44 PM   #1
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# 2
Lokolo
Old 01-09-2009, 7:00 PM
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Hey I'm only 20 so not even thinking about kids yet. But are there any self select CTF investments? So like a Hargeaves Lansdowne Vantage ISA equiavlent?

Or is your only option to go and see an IFA who can set one up?

Just would be nice to have a top self select investment CTFs with charges etc. on.
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# 3
Stubee
Old 02-09-2009, 3:14 PM
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Default Trust Fund / Bank Accoutns for Estranged family

I have a question about bank accounts / investment funds. Basically I have a niece and nephew who are both estranged from my family because of a messy divorce, Im not allowed to see them grow up and any cheques I send them for birthdays or Christmas never get cashed.

I was thinking of setting up a small trust or bank account for each of them so that at least if they cant see me theyd at least get something from me in the future say like when theyre 21 or something. Im not sure how Id go about setting up something like this.

The kids are now 12 and 14 respectively so I was wondering if you could put me on the right track?
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# 4
wardster
Old 02-09-2009, 10:07 PM
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Default child trust fund - disabled children

In the last budget it was mentioned that all disabled children would receive an extra payment into their child trust fund. Despite scouring the budget report and the internet I haven't found anymore mentions of this or when it will happen.

Is anyone else aware of this and do they have any details ?

many thanks
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# 5
purplegaily
Old 02-09-2009, 10:32 PM
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Default Stocks or Interest

I just placed the cheques for my children in the Children's Mutual accounts - which are linked to stocks rather than being interest based. As both were invested at the start of 2007, they are now worth less than when initially invested (won't put my own money in, as have made separate provision for them in my own name, which they can have when they are ready for it - not just as they turn 18!)

My boys are nearly 3 now, anyone got any thoughts about the longer term for these - ie think I should leave them there as the market is likley to change for the better at some point, or should I tart about for a good savings rate now until the market recovers??

(Edit - not after professional answers, just thoughts/ideas - other people's experiences and what they've done)
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Last edited by purplegaily; 04-09-2009 at 9:02 AM.
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# 6
cloud_dog
Old 04-09-2009, 3:53 PM
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Quote:
Originally Posted by Lokolo View Post
Hey I'm only 20 so not even thinking about kids yet. But are there any self select CTF investments? So like a Hargeaves Lansdowne Vantage ISA equiavlent?

Or is your only option to go and see an IFA who can set one up?

Just would be nice to have a top self select investment CTFs with charges etc. on.
Selftrade provide a Self Select CTF. They went back on introducing their AMC on the CTF account so you only pay 12.50 per transaction (plus any tax/stamp duty on shares).
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# 7
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Old 04-09-2009, 3:56 PM
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Quote:
Originally Posted by purplegaily View Post
My boys are nearly 3 now, anyone got any thoughts about the longer term for these - ie think I should leave them there as the market is likley to change for the better at some point, or should I tart about for a good savings rate now until the market recovers??

(Edit - not after professional answers, just thoughts/ideas - other people's experiences and what they've done)
Seeings as you are alsready making other provisions for your children why not view the CTF money as a freebee and take some risks with it? You never know it may pay off
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# 8
pammie39
Old 04-09-2009, 11:22 PM
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hi all
just wondering--- the ctf is tax free, is this till they are 18 or 16, then pay heavy tax for 2 years untill they are 18?

just wondering because if it is tax free untill 16 then taxed untill 18 then that means the goverment will get alot of money back through taxes.

thanx in advance
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# 9
cloud_dog
Old 05-09-2009, 12:03 AM
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Quote:
Originally Posted by pammie39 View Post
hi all
just wondering--- the ctf is tax free, is this till they are 18 or 16, then pay heavy tax for 2 years untill they are 18?

just wondering because if it is tax free untill 16 then taxed untill 18 then that means the goverment will get alot of money back through taxes.

thanx in advance
Ooooh, you cynic...... It is tax exempt until aged 18.

Edit: Ignoring the CTF, children are treated no differently than adults when it comes to tax; everyone has taxable allowances and over these allowances you are taxed.
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# 10
purplegaily
Old 05-09-2009, 10:01 PM
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Originally Posted by cloud_dog View Post
Seeings as you are alsready making other provisions for your children why not view the CTF money as a freebee and take some risks with it? You never know it may pay off
Cloud_dog - what a good idea. Hadn't thought about it like that. Mind you - too much gambling, and they may wonder why they haven't got any money in the account for their 18th, when all their mates do!!

My thoughts on the CTF link back to when I was at Uni, and Student loans. One of the guys at our place got his full loan as soon as possible, and went out and spent the lot the day he got it on a new wardrobe (this was 1993, so they weren't what they are now) - he then went back to his parents for the money for his college books.

I hope I can bring my children up better, but you never know what they'll do, and as they are all going to get cash at 18, it may become the birthday slush fund.
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# 11
cloud_dog
Old 06-09-2009, 10:20 AM
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Quote:
Originally Posted by purplegaily View Post
I hope I can bring my children up better, but you never know what they'll do, and as they are all going to get cash at 18, it may become the birthday slush fund.
Yes, this is a common concern and theme on these boards, and to a large extent one I do understand.

Having said that in reality as they grow you will have to trust them more and more. There isn't anything to stop them at 18 gettting a credit card and blowing the balance, nothing to stop them borrowing your car getting hammered and driving home; except how they are brought up and them understanding about responsibilities.

My view is that I am investing the CTF and after 4 years of investing (self select) it has more than doubled and obviously, I hope my child will have a degree of responsibility towards the monies at 18. Additionally therre is a savings account for her which she will start being aware of / using the next few years. We are also saving for her for things which a child may not want to spend money on (Uni, car, house, wedding - all those boring things).

Atm, she does not and will not get pocket money, she earns 'pennies' for doing things (tidy bedroom, etc, etc, etc). This is really udeful because it allows her to psudeo buy things when we are out (obviosuly we top up if she deserves it and has some pennies) but (importantly) if we don't feel its appropriate (waste of money etc) we simply ask her if she has any pennies and if she hasn't then she simply can't have it - works really well for us.
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# 12
swashbuckler
Old 06-09-2009, 7:29 PM
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Are you entitled to claim the money you put into the child trust fund as a gift on your tax return?
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# 13
Nichathain
Old 15-09-2009, 11:27 AM
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Default Advice on setting childrens bank accounts

Hi
I want to set up a savings account for my nephew and two nieces, in which i will put money in on a monthly basis. I'm not sure how to go about this or what is the best method, would i need to set a trust fund for them?

Many thanks
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# 14
bully1234
Old 15-09-2009, 9:54 PM
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Hi, I have a Cash child trust fund with Nationwide about 2400 and the interest rate is not very good. Anyone know if I can move this money to another provider and if you know which is the best account to move this money into?
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# 15
cloud_dog
Old 17-09-2009, 10:42 AM
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Quote:
Originally Posted by bully1234 View Post
Hi, I have a Cash child trust fund with Nationwide about 2400 and the interest rate is not very good. Anyone know if I can move this money to another provider and if you know which is the best account to move this money into?
CTF Accounts are portable unless there are account specific tie ins applied from your existing provider.

Look at the below link for a list of child accounts (you'll need to pick out the CTF versions):

http://www.moneysupermarket.com/savi...iryId=16313365
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# 16
unluckyone
Old 25-09-2009, 11:09 PM
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Originally Posted by bully1234 View Post
Hi, I have a Cash child trust fund with Nationwide about 2400 and the interest rate is not very good. Anyone know if I can move this money to another provider and if you know which is the best account to move this money into?
My sister and I have researched CTF's quite a bit over this last week. I wasn't happy on the idea of the little one having less than we've saved at the end of the term, so my sister will change to a cash CTF, which i see is what you already have.

Yorkshire Building Society is currently the best, based on interest and you can transfer anytime you wish.
Martin, the money saving man himself, was only talking about this a few weeks ago on GMTV, which is what made me start looking into things, and he advised that you can transfer.

I wonder if you can only transfer to a CTF or could we move it to a child saver account - halifax currently give 6% interest.
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# 17
Oly
Old 29-09-2009, 11:47 AM
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Having just had the arrival of Lil' Lily we are keen to invest our CTF in the FTSE 100 for the full 18 years - but I would like to find the cheapest way to do this.

Our intention is to simply put the 500 CTF (after the additional 250 at age 7) in the FTSE 100 and leave it there for the full duration as a bonus 18th birthday present. All other savings will be going in a separate account, controlled by us, for when she is older & wiser.

Any advice would be greatly appreciated.

Thanks,
Oly
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# 18
Tyrannosaurs
Old 29-09-2009, 1:40 PM
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Quote:
Originally Posted by unluckyone View Post
My sister and I have researched CTF's quite a bit over this last week. I wasn't happy on the idea of the little one having less than we've saved at the end of the term, so my sister will change to a cash CTF, which i see is what you already have.

Yorkshire Building Society is currently the best, based on interest and you can transfer anytime you wish.
Martin, the money saving man himself, was only talking about this a few weeks ago on GMTV, which is what made me start looking into things, and he advised that you can transfer.

I wonder if you can only transfer to a CTF or could we move it to a child saver account - halifax currently give 6% interest.
Two things:

1) No you can't move it out of a CTF - it must stay in there until the child turns 18. You can move it between different CTFs but not into other savings vehicles.

2) The Halifax 6% is only on regular savings capped at 100 a month for a year. You can't get that rate for an amount you transfer in. The best flat rate is currently around 2 or 3% - roughly on a par with the best CTFs.
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# 19
Tyrannosaurs
Old 29-09-2009, 1:44 PM
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It seems that the Hanley Building society are currently offering a cash CTF at 5%.

The catch seems to be that you have to open it in person and that they only have five branches, all in or around Stoke on Trent.
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# 20
cloud_dog
Old 29-09-2009, 5:25 PM
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Quote:
Originally Posted by Oly View Post
Having just had the arrival of Lil' Lily we are keen to invest our CTF in the FTSE 100 for the full 18 years - but I would like to find the cheapest way to do this.

Any advice would be greatly appreciated.
Most CTF providers offer fund based investments, so assuming you do not want tot go down the self select route (Selftrade) then someone like F&C might have what you want. They provide a FTSE 100 tracker, plus 15 funds:

http://www.fandc.com/new/IT/Default.aspx?id=78397 (Scroll down)

A full list of providers is here
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