Saving Child Benefit in new trust fund?

BenedictsMummy

I have decided to save all the child benefit I receive to give my little boy a lump sum when hes older.( £16.50 a week). We are also entilted to the new saving voucher of £250 Which we are entitled to put into a tax free account and add up to £1200 a year . What I am wondering is would we get a better return if I put the saved Child Benefit into the Trust Fund or if I put it in a high interest saving account? Also can anyone recommend a childs savings account?

jo_b_2

Welcome to MSE, Benedictsmummy!

There isn't really much info around about the Child Trust Fund just yet, as the accounts won't be opened until April. The only obvious drawback to investing Child Benefit in this type of account would be that your child can't access the money until they are 18. :-/ This could be a good or bad thing, I suppose.

I opened a First Save account with the Alliance + Leicester for my son. As far as I know this account still has the highest interest rate of all the Children's saving accounts and I have never had any problems with them.

I also used a coupon out of the NCT Chequebook which paid £5 when the account was opened. I haven't got a NCT chequebook for this year, but it might be worth trying to get hold of one if you are considering opening an account with them.

One of the best things is that I have my current account with A+L as well, so I can transfer money from my account into my son's online, which saves time and hassle.

Hope that helps. Jo

Spendless

I'm sure i read something on this site from Martin saying he'd do an article on it at some point in future.

We have one child that qualifies and one that doesn't - so we need to sort something out- so there's no arguments when they're older.lol

The eldest already has an A& L account and we've recently started a standing order to go into his bank account each month.

The youngest hasn't got a bank account yet as we're waiting for this money from the child trust.

As jo-b points out you can't withdraw money from the child trust - only the child can when he/she reaches 18 - so we'll have to take this into account when sorting out bank accounts for both ours.

MTVGeneration

I am looking in to this too for my son who is not even a week old!

Saw this on moneysupermarket.com

http://www.moneysupermarket.com/Savings/SavingsDetails.asp?SavingsID=12984&Amount=1&Lender=

Accoutn was with SAFFRON WALDEN BS - Ladybird and it gave 5.35% which is just 0.1% more than Alliance and Leicester. DOes anyone have any more info on the Trust fund. I don't mind my son not being able to access it till he's 18...at least it might get used for something good like uni etc....or thats the idea!!

MTVGeneration

More info on the Trust Fund....

http://news.bbc.co.uk/1/hi/business/2936101.stm

http://www.thechildrensmutual.co.uk/Campaigns/Guides/tcm-education-savings/child-trust-fund.jsp

http://www.natwest.com/personal/services/investments/index.asp?navid=PERSONAL/ACCOUNTS_SERVICES/INVESTMENTS/Child_Trust_Fund&pid=2#1

jo_b_2

More info on the Trust Fund....

Thanks for the links. As Spendless said, Martin has promised to write an article about the Trust Funds as well, soon.

BenedictsMummy

Very many thanks to all.I have decided to put money in A&L account until Martin does article. BBC link very useful. Congrats to MTV Generation on the birth of your little boy!