Child Trust Fund or 3/5 Year Bond

Dillence

We now in position to save for our 5 year old daughter (until she is 18) and have had a Halifax regular saver for the last year. We now have to move the money to somewhere else and cannot decide between her existing CTF (stakeholder) or continually putting into a longer term bond (keeping an eye on interest rates).

I am generally risk adverse but DH likes a bit of a gamble.

We know she cannot have a junior isa at the moment, but maybe that might change in the future.

I am just worried that as CTF are no longer available this might have some impact on their growth - but don't really know.

Any thoughts?

D

atush

My htouhgts are that cash performs poorly over periods longer than 10 years in most cases. I would (and have) opened an investment trust savings plan saving monthly for them. This uses Pound Cost Averaging which will help you with returns during market volatility.

Or try a 2 prong approach in that you invest in a long term saings acct with the cahs you have saved, and open a savings plan with the new monthly savings.