Child Trust Funds advice please

aspiration_2

Great info 'greensmoker'. Did not even know these investment companies existed.

Thanks 'Reaper'. Will wait for the JISA and switch.

xylophone

Did not even know these investment companies existed.

https://www.gov.uk/child-trust-funds/overview See under Account Providers - was this information not provided to parents at the time?

sandsy

All of your children have stakeholder CTFs.


Child 1's money is in a managed fund:


http://www.foresters.com/UK-EN/tools/FAQ/Pages/CTF-Keyfacts---Key-Features.aspx


Child 2's money is in an equity based fund:


http://www.tfs.uk.com/pdfs/TFS-CTF-Facts-and-Figures-Sheet.pdf


Child 3's money is in an equity based fund:


http://www.shepherdsfriendly.co.uk/shepherds-child-trust-fund.aspx


Suggest you read up on each provider's product offering and the charges.

aspiration_2

xylophone wrote: »

https://www.gov.uk/child-trust-funds/overview See under Account Providers - was this information not provided to parents at the time?

I did consider F&C and a few others. I have heard only negative comments about CTF providers in this forum. This is the first time I heard that some (not so well-known) providers did very well for the kids. I will now try to have a JISA with one of these.

Reaper

aspiration wrote: »

I did consider F&C and a few others. I have heard only negative comments about CTF providers in this forum.

It's human nature to complain loudly about poor performance and do nothing about good.

F&C got complaints for introducing a £30pa fee which would quickly wipe out those who invested only the free money from the government and added nothing extra. In our case both parents and grandparents have been contributing making the fee pretty irrelevant and in the 3 years it has been going it is now worth 36% more, and that figure would look better still if it were not for fresh money being added each year dragging down the growth figure.

I plan to reverse normal teenage behaviour by begging my son for cash when he is 18. I might give him my dirty laundry too.

xylophone

normal teenage behaviour

Ever open beak with exhausted parents flying to and from the nest with large titbits?:D

greensmoker

Thanks so much for your responses.
Next question: What happens to this money at age 18? Say I add money to their accounts and at age 18 they each have £11,000 in their accounts.
If they take out the money to pay uni fees or whatever, do they pay tax on this money?
I understand they don't pay tax on the growth, but would they pay tax on the capital that either myself, or family members deposit in their accounts?
Thanks

Reaper

greensmoker wrote: »

If they take out the money to pay uni fees or whatever, do they pay tax on this money?

All the money comes out tax free, regardless of who put it in.

xylophone

What happens to this money at age 18? Say I add money to their accounts and at age 18 they each have £11,000 in their accounts.

Details of how CTF and JISA work in post 13 link above.

bossymoo

As an aside I opened stakeholder ones for both my children with Halifax. My youngest only got the £50 voucher so I added to hers and I paid a little into both over a few years, and the investments seem to be doing well.

With the vouchers I remember there was a list of providers and a reasonable summary on the choices available.