ISA for children advice please? And/or CTF, Savings etc

FestiveCheer

Quite a specific question but hopefully posting in the right area.

If a child used the government CTF scheme - does that mean they can't have an ISA? Woman in bank seemed to telling me this?!

Either way, what is the best place to save a small monthly amount until child is 18 - but we still have control over the account? This will be totally separate to spending money / piggy bank / "current" account when they are older. We currently have the high interest account with the Halifax, but the benefits of that end after one year, so it is only valid for 12 months really - need a long term solution - so, to ISA or not to ISA? :think:

Robin_TBW

FestiveCheer wrote: »

If a child used the government CTF scheme - does that mean they can't have an ISA? Woman in bank seemed to telling me this?!

Yes. No ISA for them.

Might be best to save money in a Instant Access or Regular Savings account (in your name) for a while and build up a decent amount. Then put that into a fixed-rate bond (in their name and fill out an R85) for whatever term/rate suits best whilst continuing to save in the IA/RS. Then do the same again... and again... and again until 18.

Keep renewing the IA/RS accounts though as the rates will obviously drop after a year.

I may be completely forgetting something though. I don't have a kid. (anymore)

xylophone

See http://www.hmrc.gov.uk/tdsi/children.htm re "£100 rule" if a parent gifting money to your child outside tax privileged schemes like the CTF/JISA.

If the child has or is eligible for the CTF he cannot have a JISA.
https://www.gov.uk/child-trust-funds/overview

atush

If the child is still young, and you wont' use the money for them for a long time yet, I would invest in a bare trust via an investment trust savings plan.

Or switch their CTF into an investment trust such as F&C and then keep adding to it.