Top Child Trust Funds Article Discussion Area

grahamh138

Hi,


would anyone be able to tell me whether my money would be safe from a third party who is named in my Mutual will if I was to put some aside for a grandchild in a child trust fund or just into trust?

Tammer

firsttimemummy wrote: »

Hi, I have recently had a baby boy and am looking to open an account to save for him for when he is older. Ideally I'd like a good interest rate but also for him not to have instant access to the cash until he is 18 or 21. Any advice on what banks are best?

Many thanks.

Hi,

Congratulations on the birth of your son.

As you're keen to invest for 18 or more years (which is very sensible in my view), why are you looking for something that pays an interest rate rather than something stockmarket related?

A savings account with a bank would pay an interest rate but it would struggle to keep up with inflation.

confusedlondon_2

Hi folks

Sorry to go over old ground (possibly).

But I've been asked to be a god-father to my niece and want to set something up so she has some kind of nest egg when turning 18 or 21. I'd look to have something that:

a) I can pay into annually (c.£500)
b) She and her parents can't touch till at least 18
c) I don't need to actively manage (i.e. just pay into)
d) Lasts sufficiently long to satisfy the above (i.e. not rolling over 5 yr NS&I bonds or something)
e) Is tax efficient

Can anyone help or suggest what I can do?

Can't set up Junior ISA or similar as I'm not her parent/guardian and want to give it as a present so set it up without there involvement. Also, I want it to be totally separate from her mum/dad for simplicity and peace of mind.

All advice gratefully received, thanks in advance.

David

kopper

I am looking for a savings account for my child and like the idea of a Junior ISA but not keen on the fact that at 18 the child can do what ever he likes with it.
Is there an equivalent account where you have joint names (parent & child) so at least the parent have equal say on where the funds should be spent when they turn 18?

Thanks

xylophone

You can't open a joint account with a child.

You can hold an account as bare trustee for your child but he would have the absolute right to access and control at 18 (16 in Scotland).

If you provided the capital in this account, any interest over £100 per annum would be taxed as yours.

The "£100 rule" does not apply to JISA.

You can hold an account designated for a child but this would be your account - you can choose whether or not to give the child the money.

This account, being yours, would be taxed as yours.

You might just as well regard your own ISA as "earmarked" for your child so that you can give the money at a time of your choosing?

teabody

I currently have 2 CTF non stakeholder at Britannia for my kids but was wondering if anyone has switched to a JISA from one of these? Were you charged?
One reason is that I don't actively use Brittania and think it would be better to put all our accounts in the same place.

GLang_2

Following advice on the MSE email, I spoke to Skipton BS today to see if they would accept a transfer of my daughters CTF (from Natwest). They said they do not accept transfers of different products -- which kind of contradicts the advice on the MSE website.

marywooyeah

GLang wrote: »

Following advice on the MSE email, I spoke to Skipton BS today to see if they would accept a transfer of my daughters CTF (from Natwest). They said they do not accept transfers of different products -- which kind of contradicts the advice on the MSE website.

Thanks for this, I also read the article and was planning on visiting Skipton today to set up a Junior ISA for my daughter and to switch my son's CTF to a Jr ISA as their rate seemed to be the best on the market.

You've saved me a trip!

xylophone

my son's CTF to a Jr ISA as their rate seemed to be the best on the market.

Why do you say this?

http://www.thisismoney.co.uk/money/saving/article-1583863/Best-savings-rates-Junior-Isas-childrens-accounts.html


And Halifax offers 4% if the adult contact has an ISA with them.

http://www.halifax.co.uk/isas/cash-isas/

CuddlySteve

The article discusses transferring a CTF into a J-ISA, but does not discuss whether it is possible to hold both concurrently, as you can ho;d different ISAs from different years.