What's the Best Alternative to the Child Trust Fund?

Teabags72

Hello everyone

I'm after some advice on children's savings. I have two children - a girl (2yrs) and a boy (8 months). They both have children's savings accounts which i contribute £10 per month each to, plus birthday, christmas money etc goes in there. When my daughter was born, she had the government £250 voucher which i put in a CTF. In the current climate, i do not have any intention of adding extra money to this and am merely leaving the £250 alone to do what it will. My son didn't qualify but i would like to invest £250 for him also. I know the Junior ISA's have now "replaced" the CTF's but all the ones i have found have required a regular direct debit to the account, which i don't want. Someone has suggested i buy £250 worth of shares in a blue chip company but i am clueless as to a good (and ethical) company to invest in. Can anyone advise some good companies please? Does anyone know of a Junior ISA where i can just invest £250 and leave it? Any other ideas?

Many thanks in advance

atush

"in the current climate". This means in this current climate when stocks are some times dropping (rather than rising) is actually a pretty good time to invbest monthly as you gain more shares or units for your money. Then when things turn around (and they always do in the end) you are better off.

Form small children and babies, equities will outperform cash in the long run. I like investment trust savings plans. These are low cost and start from as little as 20 per month (although many are 25-50). Look at invesco pertpetual and Witan for low regualr saving.

But you can always open a children's regular saver if you want to stick with cash. Try the Halifax

Bumpmakesfour

I'm trying to work this one out too as I have three kidlets aged 5,7 and 8 who all qualified for the CTF but bump due next month won't so I wanted to put £250 in a similar acct and leave that as I have with the other three but have no clue where to start.
We have seperate savings accounts for the children that we contribute to already so really want something as similar as poss to the CTF so will watch this thread for ideas

atush

For children if investing regularly over time for a period of greater than 10 years I would not suggest saving in cash. I would (and did for my 3 kidlets who are now 17-20 lol) invest in equities. By Junior ISAs or the methods I mentionned above. You could always have cash savings from gifts etc saved in a savings acct alongside.

My kids have both, and the oldest used his to fund his non essential spending at Uni (he was lucky we paid his way but others could use this for food costs etc). I assume the other 2 will use theirs the same way once they get their hands on it (and not before 18 if I have any say lol. But as they are twins I may dip into their Trust savings for living costs.

Even the oldest still doesn't have access to the investment trust money but I have told him about it.