Child Trust Funds discussion area

Willy_3

I've been given some info from a friends of mine.

Bounty are doing a Stakeholder ctf via family investments. They do not state charges, just 'upto 1.5%'. However they are offering free weekend breaks (if you buy a meal at the hotel), if you pay a regular amount in on top of the voucher.

https://www.bounty.com/ctf

Hope this helps someone.

poorcat

I'm not going to make a final decision until Martin publishes his article on Child Trust Funds next week, but this is what I'm probably going to do with the voucher:

My son (aged 2) already has a children's instant access savings account with Nationwide, which grandparents pay a total of £150 into a year, and we add any other lump sums from Xmas, birthday etc. Currently he has about £1,600 in there.

I don't want to risk grandparents' cash in a stakeholder or other shares-related account, but it's OK - Nationwide are offering a CTF savings account, offering 5%, increasing to 6% if you pay at least £240 in a year.

Originally I thought I'd transfer over all the cash in his normal savings account to the CTF one, and get grandparents to pay into that from now on. But I can't do that all at once because the max you can pay into the CTF in any one year is £1,200. Also, the £150 grandparents pay every year falls short of the £240 needed to get the higher interest rate.

So... I'm keeping his existing child account open, and have asked grandparents to continue paying the £150 into it. Once a year, I will transfer £250 over to the CTF. What is already in his existing account, plus future interest, will cover the extra £100. This way, we can guarantee getting the higher rate of interest every year.

Also, because the (currently 4.95%) interest on the ordinary child savings account is paid on December 31 and June 30, but the CTF interest is paid on his birthday (September 25), as long as this transfer happens between July 1-Sept 24, we will get two loads of interest on this £240.

Any other lump sums will go straight into the CTF as and when we get them. I know that if I put it in the savings account first I could make a double load of interest, but I want to keep things simple.

We may re-think this all in nine years when my son hits 11, as in theory he will then have access to his child saving's account, and the grandparents do like the fact the cash in the CTF can't be touched be him (or anyone else) until he's 18.

It seems a relatively hassle-free and risk-free way of making the most of the CTF. I'm always grateful for free money, but working out what to do without has been a bit of a pain in the bum! My system won't be best for everyone, obviously, but if this suggestion helps anyone else avoid the brain-ache I've gone through to work this out, it will have almost been worthwhile!

Bet Martin's missive on Wednesday will make it all seem so simple that I'll wish I'd left all the hard work to him...

davidjwest

I wouldn't worry too much about which CTF to choose, as long as it doesn't charge up front fees etc. (very few of them do)

You can always change your mind and transfer to another fund, most of the time this is free (just make sure you read the small print).

Personally I'm making my decision in the next week or so and then applying in good time to make sure the account is up and running when CTFs go "live" on April 6th.

Anyone wanting to compare CTFs might find my website useful, CTFGuide.co.uk.

swansal

I have a child born in 2003 who has received their CTF cheque. However, I feel this is very unfair to our other child born two years previously. Does anyone know of accounts that offer the same benefits for children not eligable (which obviously we are going to have to try and find the equivalent amount of money to put in - to make it fair!!)

redrez

Help, have read loads of posts on this site, but still in a muddle. My daughter is 3 yrs. Born b4 being eligible for the CTF Money. However she has an HSBC 60 day savings account with £325 in it, this is added to infrequently when lots of pennies are added up!

What is the best thing to do with this money? Should I (Can I) put this in to a CTF for her, or should I just transfer it into a better savings account. I like the fact at the moment this is not an instant access account, but do these pay the best interest?

Or has neone got a completely different suggestion. I do not want her to be able to have access to the money until she is at least 18 years old.

Spendless

redrez wrote:

Help, have read loads of posts on this site, but still in a muddle. My daughter is 3 yrs. Born b4 being eligible for the CTF Money. However she has an HSBC 60 day savings account with £325 in it, this is added to infrequently when lots of pennies are added up!

What is the best thing to do with this money? Should I (Can I) put this in to a CTF for her, or should I just transfer it into a better savings account. I like the fact at the moment this is not an instant access account, but do these pay the best interest?

Or has neone got a completely different suggestion. I do not want her to be able to have access to the money until she is at least 18 years old.

You can't put the money into these sort of CTF for her as they are only available for children born on or after 1 Sep 2002. I have one child that does qualify and one that doesn't.

I have seperate savings accounts for them also. I'm nopt sure who currently offers the best interest rates but sure someone else will be able to help you.

isasmurf

Please post in the more recent Child Trust Fund thread located here.