CTF discussion area

cloud_dog

Ok, alot of people are still unsure of what / where to go with their CTF monies. I cam across the below page from the onlne version of the Sunday Financial Mail. It provides info / recommendations for the three different types of CTF's available (cash, stakeholder, and non-stakeholder). It also offers opinion, and reasons, on ones to avoid.

http://www.thisismoney.co.uk/saving-and-banking/article.html?in_article_id=399208&in_page_id=7

Hope it helps.

cloud_dog

davidjwest

jo_b wrote:

Has anyone actually made a decision and opened an account yet?

Yes, just sent my application form and voucher off for a rather boring savings style CTF from the Nationwide.

My reasoning being that I am unlikely to contribute much to the fund so want to avoid any charges early on and the rate of 5-6% isn't bad compared to how I *think* the markets are going to perform in the short-medium term.

The markets need to beat the interest rate I am getting by 1.5% approximately taking charges into account (every CTF seems to charge more or less this amount) and I don't think that is a certainty by any means.

I'll probably transfer into some kind of investment CTF when the market next "corrects" itself, which is probably a few months/years away so don't panic!

Who knows! I'm just trying to make the best choice I can with the information at my disposal, plus some guesswork!

Dovid

Hi

Just received voucher for my baby. My outlook is that I have been given £250 odd quid for my child, so I will put it in an account and leave it till he is 18. I don't want to use the TF to invest additional amounts as I will not have a say on the additional amounts. If I can persude my son to use it wisely at 18 - great - if not nothing lost. Can someone suggest which account will pay the best rate just to deposit the voucher with no added amounts - without the bank nicking too big a chunk in charges!?

Thanks

superfurry

I think i've heard reports that the government will be paying a yet undisclosed additional amount after 5 or 10 years. Have I been dreaming, or is this true ?

Ickle_Steve

The government have said they plan to pay out again when the child is 7 years old. I think there was also mention in the budget about another possible payment when the child gets to the early teens.
All this depends on the government at the time. If the government changes at a future election it could all be scrapped.

davidjwest

The figures I heard were an additional £250 payment on the childs 7th birthday.

I suppose that might be a bigger payment if the family are considered on a "low income" currently around the £13k mark, you get up to £500 for your voucher if you qualify as such.

Of course it may all change as governments come and go, I wont be surprised if the final fund is subject to some kind of tax when it matures!

appleblossom

I've spent ages trying to find the best rate of interest and in the end got it down to Yorkshire or Brittania, opted for Brittania in the end as they paid a bonus for longer than Yorkshire - same as you - just want to deposit the money then forget about it for 18yrs!, you can download a form from their website and send it off with the voucher when you have it - I sent mine yesterday, there are no charges and you do not have to contribute anymore money into the account. hope this helps you a bit on deciding.

davidjwest

I'm probably going with the Britannia for my second child, will decide after this weekend.

fatboyonadiet

ASDA have sent me a leaflet about opening a CTF account with them and if I do it online I get a £15 George gift card, is it worth me opening the account taking the giftcard and then switching to someone more competitive in a year or so?

I'm not sure how much interest they pay (and can't seem to find it either) but from rough calculations if I was to open an account and keep it for a year it would be, as the giftcard equates to about 6% plus whatever interest they actually pay too.

What do you think? Anyone offer any suggestions? Is it worth it?

Thanks in advance.

isasmurf

The ASDA CTF is an equity based fund, therefore there will be no interest. The fund will grow depending on what it's invested in will grow.