Child Trust Fund - worth still paying into?

A_bit_skint_this_week

My daughter is now 4 years old and we pay in £40 per month into her CTF. We have paid in monthly since she was born and topped up her first year to the £1200 maximum.
the last statement suggested that the policy is currently worth less than we have paid into it.
As the Government have closed the scheme and we won't get any further payment from them, I would guess that there are better schemes out there for saving for her future.
I was never that happy that the money would automatically become hers at aged 18. Whilst we intend the money for helping her go to university/set up her own business/deposit for a property/whatever, I'm not happy that she could choose to blow it all on a big party!

Should we stop paying into the current CTF?
If we do, can we cash in the current policy or should we leave the money where it is?
Where should we be putting our £40 per month so that we can build up a sum of money for my daughter's use in the future but can keep the policy in my name?

Aarons_mummy

Why not open a savings account in your own name that isn't invested and just accrues interest? You can get the ones where you never take money out/only take out once a year etc.

I think you can move it (to a locked savings account basically) but as it's in your daughters name I'm not sure if you can cash it or not.

lauzellen

Over long periods of time stocks and shares are usually the best option if low risk and spread because of the low interest rates compared to inflation - atm the economy is not in a good state but when things improve so will the return on the money. If you shop around you can find some higher interest rates for childrens accounts.

AnxiousMum

You cannot cash in the CTF - even the money that you have deposited into it yourself - the fund is basically untouchable until your daughter turns 18 and has control of it then. You can however, change the fund that it is in if you wish.

chudies

AnxiousMum wrote: »

You cannot cash in the CTF - even the money that you have deposited into it yourself - the fund is basically untouchable until your daughter turns 18 and has control of it then. You can however, change the fund that it is in if you wish.

quite correct - CTF are locked until the child hits 16, then they can manage it BUT still not access it.
when they get to 18, they can access the money (btw, only they can access it, not anyone else including the registered contact

as for growth of the CTF, stocks and shares generally outperform cash, especially in a 18 year life cycle, so thats where my CTF is

regarding future money, i plan to open a child savings accounts. there was on "rupert the bear" one by investec, but that i heard has closed too - but there are lots of others

however, i will still be putting money into the CTF and will look at it over the next 4-5 years to see how it performs

A_bit_skint_this_week

Thanks for that, Chudies. I still have a problem though with the fact that it is my money going into the CTF. What if my daughter wants to have a big knees up at 18 with my hard saved cash. I'd love to think that we will do a good parenting job and she will grow up to be responsible with it, but I'm being realistic in thinking that may not be the case. Does this worry you?
I am also concerned whether the CTF account I have will continue to be competitive - there are no new customers coming into it so there's no incentive for the company running it to see it runs well. Even though I pay an annual admin fee on it, I am worried that it will be pushed to the back of the shelf and gather dust.
What do you think?