Child Trust Fund Account or Fixed Savings?

emza10

Hi,

Just got £50 CTF voucher through from the Government, we have a total of £1500 to invest in our daughters name as gifts from family - would it be better for us to put £1200 of it into a Child Trust Fund Account and the other £300 into a fixed savings account (I read that the Yorkshire and Clydesdale Bank has a good one at 4.25% aer at the mo) or some other percentage split? Which Child Trust Fund Account is the best or are they all similar? We're happy to put it into a stakeholder one.

Any advice gratefully received.

Thanks

Emma

jimjames

If investing then the CTF from F&C looks pretty good, I have a different account with them as my kids didn't qualify for CTF by just 1 month!!

http://www.fandc.com/new/IT/Default.aspx?id=87254

emza10

Thanks, so would it be better to put the full £1200 in the CTF account and the other £300 in a savings account?

cloud_dog

emza10 wrote: »

Just got £50 CTF voucher through from the Government, we have a total of £1500 to invest in our daughters name as gifts from family - would it be better for us to put £1200 of it into a Child Trust Fund Account and the other £300 into a fixed savings account (I read that the Yorkshire and Clydesdale Bank has a good one at 4.25% aer at the mo) or some other percentage split? Which Child Trust Fund Account is the best or are they all similar? We're happy to put it into a stakeholder one.

Emma, I think you should consider what you want to happen to this money (other than it going to your child).

Is the child going to have other savings accounts?
Do you want the money going to your child at 18?
Do you want some control over how the money is used?
Would you rather the child recieves the money or some of the money at a different age, 21 for example.

Based on your plans and future financial plans it may be useful to:

Put it in to the CTF
Savings account in your childs name
Savings account in your name (ISA possibly) for the child
Investment account in your name for the child

Any combination of hte above.

Think about the future and what / how you want your child to manage with the money.