Child Trust Funds

fmevans

Where is the best place to put the £250. Shares do better than savings accounts but am unsure what the diference is between stakeholder account and accounts that invest in shares.

Nick_C_4

I personally agree that over the timescale involved (18 years) the likelihood is that stocks and shares will beat cash, but obviously there is some risk that they won't. A stakeholder CTF is invested in stocks and shares. A stakeholder CTF has to meet certain definitions laid down by the government. Charges not higher than 1.5% per year, no transfer fees, lifestyling when the child's older, invested in stocks and shares, being some of these. Due to the minimal profit providers make on these, many of the stakeholders are index-trackers (I think Halifax and HSBC are examples). Non-stakeholders tend to have a wider / more interesting range of funds available but have slightly higher charges (I think F&C is one with a good range of funds available). Here's a list of providers. Your choice!

grumbler

Child Trust Funds - Martin's article ...

dunstonh

Some of the non stakeholder CTFs still charge the same amount but are not classed as stakeholder as they dont have the lifestyling allocations.

ReportInvestor

You can get lower charges with some non-stakeholder share based CTFs e.g. Foreign & Colonial Investment Trust, so you could take advantage and do your own lifestyling by switching to a cash CTF nearer your child's 18th birthday if the market has had a good run.