Add to CTF or seperate savings account ?

MadMat

I have recently tracked down the details of my 10 year old's CTF. We originally placed it with the Woolwich, who were taken over by Barclay's and have placed it with a company called family investments. http://www.familyinvestments.co.uk/child-trust-fund/overview/

It seems to be doing OK, his £250 voucher is now worth just over £550, which seems a reasonable rate of return after 10 years. But the management charge of 1.5% seems high to me for a fund that simply tracks 5 indices.

Now that I'm in. a position to save small amount each month for him I'm trying to work out if I'd be best to add to the CTF or open another savings product for him.

Any suggestions ???

Mat

xylophone

If a parent saving for child outside tax advantaged account like CTF/JISA don't forget the "£100 rule" - applies to income from savings accounts,shares etc
http://www.hmrc.gov.uk/individuals/savings-income.htm
http://bank.virginmoney.com/savings/learn/childrens-accounts/

You might want to consider continuing to contribute to the CTF until the Govt has clarified the position on transferring CTF to JISA - this would give you a greater (and possibly cheaper) choice.http://www.moneysavingexpert.com/news/banking/2013/03/budget-2013-child-trust-funds-junior-isas