Best Child Trust Fund???

Gazella77

Hi,

I remember there was a thread about it but it was a few months ago and can't find it now.
I remember people were recommending Brittania as a good place to put child's money in but am not sure how the credit crunch and the situation on the market influenced it?

So in short where do you think it's best to locate baby's funds?

Thanks in advance

dunstonh

investment or savings option?

Graeme7777

Can I be rude and interrupt - what do you think is the best savings option for a CTF?

Thanks

Mice_Elf

I'm looking at this, too. Would be more interested in a savings option, I think.

Do all charge for the privilege of investing the money? My daughter's is currently with Liverpool Victoria (based on Martin's tip that year, as the best one), & that charges a small amount every month. I stopped putting money into it, eventually, as the more that's in there, the more they take & I'm not having that.

So basically, I just want somewhere with a good interest rate where I can put my son's cheque & have it accrue interest with minimal (or no) charges.

Am also thinking of moving my daughter's if I can find a better one.

Graeme7777

Anyone have any suggestions on best CTF savings accounts?

Thanks!

Gazella77

Mice, gosh wasn't aware of any charges, that's my first baby so no idea about things.

According to some info from a few months before Britannia seemed to be one of the best ones but have no idea now and am too tired looking up myself so have posted a question here.

Gazella77

Hi,

I went to Britannia today and the current offer is 5,75% + 2 years of 1,25% introductory rate

Then Nationwide has a 6,5%

Co-op has got a shares one but am not sure how it works.

Abby - rubbish 4%

Apparently Lloyds gives £20 worth vouchers for Boots but the queue was so long I couldn't be bothered.

I have absolutely no idea about the investment ones, how do they work? what are the risks, etc?

No idea what to do

Please help!!

Mice_Elf

It's about as clear as muddy water, isn't it?

Great research, btw. Think I'll probably look into the Britannia's, or maybe CM. The Children's Mutual has been voted the best for children's savings again & charges are capped at 1.5% of the total.

Think it's an outrage that they charge anything at all for children's accounts, personally.

jessicamb

You are paying to provider whether you have an investment account - where you see the amount you are paying in the form of an annual management charge, or a cash savings account - where the interest you are paid is less than the bank have earned on your money. If you didnt pay the provider a management charge then they would not be able to make any money from your custom as all the investment returns from your money are paid back to you (well your child).

All investment stakeholder CTFs have charges capped at 1.5% annual management charge. Non stakeholder charges can vary.

With a savings account your capital is more secure but you may not better returns in the long run. Investment accounts are generally expected to outperform cash savings in the long run, but there is the chance that investment returns may go down as well as up - so there is a chance that you could end up with less than you paid in.

The Britannia account is cash savings whereas the childrens mutual only offer investment accounts I believe - so the two are not directly comparable.