Child trust fund

Miss_Ladybird

Hi,I have got a £50 voucher to put in a trust fund for my baby. Has anyone found out the best place to put it?

I can't really understand the difference between different types of account (am sleep deprived!!) Thanks in advance, Miss L

Violetta_2

There's some good info here on good old MSE hope it help's , I know how hard it is to figure something out when you are sleep deprived.

pinkmexican

Family Investments are offering £35.35 through Topcashback. I've invested LO's in this and the the cashback has been added to a child savings account for him.

I_try

I too have one which I am yet to invest. However I think it depends on what you plan to do in the future. The child will have access to the money from a CTF as soon as they turn 18 (if they know about it!), you have no say as to what they do with it which is where my reservations lie.
I know at 18 I would have had a very good night out or two on it. At 19 my parents gave me some money they had put aside for me to buy a car and it covered a (old) car and the insurance. At 22/23 I would have used it towards a deposit on a house.

Although I shall invest the £50 CTF voucher I do not intend to pay any further money into it. She can have whatever money it earns when she hits 18 on whatever she pleases even if it is just a good party with her friends.

I have set up a seperate savings account (with the best interest rate I could find so not a childs savings account) in which to pay any monetary gifts and our contributions into which she will not be told about or have access to until she is at least 21 or at the point that she is mature enough to use it in a sensible manner for her own future/financial security. Or it may pay for university fees if she chooses to go and needs the assistance for fees.

Sorry i have digressed, am also lacking sleep!

Miss_Ladybird

Thank you all for your ideas. Like you Itry I only want to put the 50 quid in and have another account for savings. Which did you go for?

Pinkmexican, that sounds great. I've never used a cashback site but will definitely be looking into it! Great tip thanks.

I_try

I have gone for the First Direct regular savings account under my name. It just has to be credited with £25-300 each month. Standing order arranged for the min amount but I can adapt it to more if/when I have more to pay in. You do need to be a First direct account holder though. I recently changed to it as it has best customer service ratings and gives £100 when opened. When that savings account is finished in 12 months I will move it to whatever is the best paying savings account then.

Generally it appears to be we have higher rates than official childrens accounts but you have to be careful regarding tax - have a read of the guide in the banking section about savings and childrens savings.

Get signed up to a cashback site if you haven't already! Very good for nearly all my internet shopping, insurance etc. If you have sourced the best price for the product you are after and it is a source that is also on cashback site it is free money and it all adds up!

Miss_Ladybird

Thanks to you all I have signed up to topcashback and the family investments ctf. Can tick off my to do list now!! I really appreciate your help.