CTF discussion area

jennielynn21

Hey just been sorting my sons child trust fund and discovered for him that britania is good to go for (interest rates). Now this is what the terms and conditions said

23. If you want to make any permitted withdrawal or transfer from the Account, before we pay any money to you or we transfer the funds from the Account, we may deduct from your Account a sufficient amount to pay any tax liability (estimated if necessary) that you may have but we will not make any other charges for the transfer of the Account.

As I read them through and realised if I wanted to keep on top of his account and transfer when interests rates change, does this mean they can charge me for moving accounts????

baby_boomer

jennielynn21 wrote: »

23. If you want to make any permitted withdrawal or transfer from the Account, before we pay any money to you or we transfer the funds from the Account, we may deduct from your Account a sufficient amount to pay any tax liability (estimated if necessary) that you may have but we will not make any other charges for the transfer of the Account.

As I read them through and realised if I wanted to keep on top of his account and transfer when interests rates change, does this mean they can charge me for moving accounts????

I think not. It's against the cash CTF rules. Although these t&cs might be written to dissuade transfers .

I guess that it's written to cover people aged 18+ transferring out of the account after they have already become taxpayers.

There would be no tax liablity on a transfer to another CTF for an under 18.

jennielynn21

Ok cool thank you. Hate signing into things serious things when you dont know what your letting yourself in for...
Now I know the background of T&C, makes me feel easier.x

aliwatts

Hi there,

Have just got the free issue of Moneywise today and have been reading through it avidly. I came across a page about CTF and how they have performed and the differences in amounts gained from different a/cs. Unfortunately neither of my children where "born at the right time", how annoying but I ant to get them the best deals for their savings.

At the moment they both have 10% Halifax regular savers a/cs, which we transfer £100 p/m each to from their own money held in another a/c. I think they earned about £52 interest each last year.

is this the best I can get? I am reading about all these F & C a/cs and investing etc and think I could be doing better for them but am baffled. Can somebody give me a detailed guide on how and if I can do better for them?

Thanks very much. :T

jo_b_2

aliwatts wrote: »

At the moment they both have 10% Halifax regular savers a/cs, which we transfer £100 p/m each to from their own money held in another a/c. I think they earned about £52 interest each last year.

is this the best I can get? I am reading about all these F & C a/cs and investing etc and think I could be doing better for them but am baffled. Can somebody give me a detailed guide on how and if I can do better for them?

What I've picked up from various threads is that you would be best off saving money for your children in an ISA in your name, providing yoiu don't already have a current one). There are tax-free Children's Savings Bonds available, but the interest rate on those isn't brilliant.

There's an article about children's savings HERE

You could also like to have a look at the Motley Fool's discussion board on investing for children http://boards.fool.co.uk/Messages.asp?bid=50077

mrs-d_3

Does anyone have any experience with Nationwides Equity Stakeholder CTF? Any advice would be appreciated.

meester

I have an M&G fund for my older child in bare trust.

I've just received £250 for my new baby, is it a good idea to find a CTF? I'm looking for one that would allow a £25/monthly payment, plus top-ups, and a good range of funds.

Ideas?

cjmumto2

Hi all
Just to add I received my sons statement today from teh HSBC and over the last 2 years he has made £16 and my daughter lost £5 in the first year.

I am going to be transferring to a savings scheme now atleast it will be guaranteed and I can always change it later if the stakeholders improve. Glad I didnt add any of my own money.

baby_boomer

CTF cash accounts are great payers - way ahead of ordinary children's accounts.

I've always maintained that it makes sense to take out a cash CTF (for both the very good interest rates & parental tax breaks on cash gifts) and then invest in equities with additional funds if you can afford it, using a bare trust fund (free to set up with many Investment Trusts) which deals with tax issues and keeps the money from the child until they are 18.

And a few Investment Trust plans have lower charges than CTFs to add grist to this mill .

keziah

I'd always thought I was quite savvy with money (though not stocks and shares etc) but my 7 month old's CTF voucher is still in its envelope. I just don't understand it, even after reading everything I can find.

I thought I'd decided on a stakeholder and was leaning to F&C but I've just read their online brochure and there is a minimum monthly investment. Is this the case with ALL stakeholder CTFs?

We don't have any "spare" money and while I don't mind risking £250 that wasn't ours to start with I don't want to risk my own money for something I don't know enough about.

Would I be better off just finding a cash one for now?