Child Savings Advice Needed CTF

The_Grateful_Ghoul

Our 2nd child has received her CTF cheque and we have decided for the short term on the Britania Non Stakeholders option of 6% including bonuses.

However our first child missed out on a CTF payment by a matter of months and we intend to setup a similar option using our own money.

Would we be able to open a CTF account for a child using our own money??? or are they only alllowed to be opened with a CTF cheque.

ReportInvestor

No. You can't do that.

But you can open a children's account which will pay tax free interest by filling in form R85, which any bank or building society should offer you as a matter of routine.

Since there are so few CTF providers of cash accounts, I suspect you will be able to get better interest over the years for your older child, as competition is greater.

Chelsea, Melton Mowbray and Halifax all pay over 5% interest on children's accounts which are available nationally.

Swattie

Nationwide also have a good Childrens account at 5.01%

but avoid A&L like the plague they're in the process of reducing their interest rates from 5.25% to 3.65%.

The_Grateful_Ghoul

Many Thanks guys for your help.

ReportInvestor

Nationwide is definitely worth considering. I've kept my lad's money there for ages.

Its chief executive Philip Williamson has just begun his tenure as Building Societies Association Chairman with a vicious attack on profiteering by banks.

So that 5.01% interest rate is likely to remain competitive for the forseeable future .

FIFE1

If you can save regularly in excess of £10 per month and don't want access to the money more than once a year Derbyshire BS regular savings account pays 5.85% I've just opened one for my son today following A&L slashing their rates. I've posted more info there if you look in that topic.

ReportInvestor

Yorkshire BS - with a more national branch network - also does a regular saver at 5.85%.

FIFE1

That's true - Yorkshire BS is howver limited to £100 pm Derbyshire is £1000 pm also Yorkshire is only for 3 years before they close it and transfer the funds.

ReportInvestor

Thanks for the info re the 3 year term .

I'm not sure how many Money Savers are going to take advantage of the Derbyshire's £1000 per month limit for their kids, though :eek:.