Top Child Trust Funds Article Discussion Area

Dab123

Thanks for the response Cloud_dog
actually today looking more closely into the CTF it is not actually at a level less than I have invested . The way Foresters explain what you have put in versus what the plan is worth is very confusing. They took over from Childrens Mutual in Jan 2017 so they use a transfer value as monies you have put into the account. This transfer value includes the growth while the CTF was with Childrens Mutual.
It still hasn't been performing that great though and unit price is down 8% this year.
I'm going to contact a financial adviser and either transfer to a different product within Foresters or someone else, maybe as you suggest something with a more global outlook

xylophone ---not sure about JISAs, do they offer good growth ?

xylophone

xylophone ---not sure about JISAs, do they offer good growth ?

A JISA is the replacement for the CTF - the CTF can be transferred to JISA.

You can hold stocks and shares in a JISA or cash - it is also possible to use a cash and a share JISA.

As for growth, it would be the same whether in JISA or CTF but the charges made by the provider can make a difference.

https://www.gov.uk/junior-individual-savings-accounts

Morporkian

Tammer wrote: »

Hi Morporkian,

First thing to do - don't panic!

Secondly, there are some things to be aware of:

• Child Trust Funds (CTF) were closed by the Government in 2011. You can still pay into them but if you take out a new one now, it is a Junior ISA. You may have had one set up when your kid was a baby that you've started to pay into now they're 11?
  
  
• It looks like your CTF is invested in the stock market. This means that, over the long term, the returns your kid will get will be much, MUCH, greater than saving (investing) in a bank account. In the short term, values can go up or down but it is important not to be spooked by this.

• You say that you are "losing money". If have been paying £10 a month in for a year or so then the gain you mention looks pretty good to be honest. Have you worked it out in percentage terms? With Brexit etc, stock markets are really volatile just now and some have fallen in value by 10 to 30%.

I believe that the Forester Financial charges are quite high at around 1.5% per year. However, for small contributions and a small fund value they are not surprising or outrageous.

If your aim is to use the CTF to teach your daughter a little bit about the value of investing over a long time, and not to blow it when they're 18, then it could all be a very worthwhile and profitable exercise for you both.

Regards,
T

Sorry for the late reply, it's been a bit hectic here. Thank you for replying.

I thought the shares part of her trust fund stopped earlier than now but apparently not and when I say I have lost money I really have this year although it is still up overall. I know it's my own fault for not checking and sorting it all sooner, but when I have paid in £120 this year and the total amount has only increased by £35, then that is an £85 loss. That's not at all 'good', imo. I understand that stocks go up and down and we chose based on the climate at the time and before the CTF scheme was scrapped, thereby diminishing the good side to it that we had. Brexit doesn't even bare thinking about right now.

I just wanted to know if people had suggestions of where is best to switch it to, probably for just a cash savings junior ISA, with regards to the fees they charge for doing so so that I don't lose too much more money and can just continue to add the £120 a year for the next 6 years. I don't mind it being just the amount I'm able to pay in as that should be what happens from a certain year in her CTF anyway because of the one we chose.

My daughter doesn't know anything about the account. The plan was always for it to be a surprise for her towards something useful when she turns 18. (Obviously she may well !!!! it all up the wall, but never mind! Haha)

Morporkian

xylophone wrote: »

Would you be happier with a cash JISA?

It would be possible to arrange for the CTF to be transferred to a JISA.

At the moment, Coventry BS is offering 3.6% on the JISA.

https://www.coventrybuildingsociety.co.uk/consumer/product/savings/children/junior-cash-isa.html

Thank you, I shall look at this once he husband is back from working away and can have the baby so I can concentrate properly! ☺️

Morporkian

Tammer wrote: »

Hi,
Reading back over your post, you may have meant to say you've been paying into the CTF since your daughter was 1?


The thing to do is - don't panic. Take your time.

How long do you expect the money to stay invested for? My son has a CTF (he's now 8) but I'm hoping he won't cash it in when he is 18, or at least not all of it.

The issue you have is that the fund your money is being invested in is not a strong performer, possibly due to the charges. However, over the long term it should outperform cash. With a cash CTF you are guaranteed to have a low return over the long term, and almost certain to lose money in real terms, unless you are really proactive in switching every year.

I've only paid in small amounts to my son's CTF, and the charges are quite high too, but the fund is a good performer so it's doing quite well overall. I thought that I could show him the value in investing small amounts for a long time and I thought it doesn't matter much if it all goes wrong (as the sums involved are small).

Sorry, yes it should have said 1 not 11! 🙈 See previous reply to another poster about having a new baby. Must remember to proof read before pressing send!

barnishroader

Hi,

Can anyone recommend a JISA whose provider has branches in Northern Ireland?

The recommendations on the MSE Junior ISA page eg Coventry BS, TSB don't have branches over here.

The only other option i can see is Tesco but again they don't have branches but allow phone banking.

eskbanker

barryheffron wrote: »

Hi,

Can anyone recommend a JISA whose provider has branches in Northern Ireland?

The recommendations on the MSE Junior ISA page eg Coventry BS, TSB don't have branches over here.

The only other option i can see is Tesco but again they don't have branches but allow phone banking.

https://danskebank.co.uk/personal/products/savings/junior-cash-isa offers 3.45%, only a shade off the market leader and better than TSB and Tesco, and with over 40 branches across Northern Ireland. I can't recommend it from personal experience as such but it looks promising based on your stated criteria....

xylophone

https://danskebank.co.uk/personal/products/savings/junior-cash-isa

https://www.danskebank.co.uk/en-gb/personal/customer-service/find-your-nearest-branch/pages/branch-result.aspx?branchsearch=950121,950361,950149,950103,950128,950132,950394,950101,950147,950106,950109,950110,950118,950125,950126,950373,950145,950005,950231,950202,950221,950227,950237,950261,950259,950351,950427,950441&branchsearchtype=1

Suejb

I have just received my daughter's annual statement for a Forester Life Stakeholder Options CTF and am very concerned to discover that despite £899 being paid in to her account this year the value of her fund has increased by £58. While I understand that stocks can fluctuate, this seems like a pretty appalling performance. My daughter is 16 so not much time left for the shares to increase in value again before she turns 18, but my concern is that if we cash this fund in now and switch to a Junior ISA there is no chance of recovering the huge losses that we have made (the fund has made losses or barely broken even for a few years now but this year is the worst performance to far).

Colin_Wright

barryheffron wrote: »

Hi,

Can anyone recommend a JISA whose provider has branches in Northern Ireland?

The recommendations on the MSE Junior ISA page eg Coventry BS, TSB don't have branches over here.

The only other option i can see is Tesco but again they don't have branches but allow phone banking.

Should also be able to manage the Tesco JISA online. That is why I have chosen them over others.