child trust fund voucher question

carolt

I opened an account at the Coop Bank for my son and paid the voucher in through the post office, about 3 weeks ago. Today, I got it back in the post, unpaid 'as it is not a cheque'. It is anyway now also out of date, as I'd paid it in just before its expiry date.

So my questions are: how do I get hold of a replacement voucher, what happens to the £250 if you don't pay it in in time, and, if the COOP is right and I can't pay the vouchers into a normal bank account, WHERE can I pay it in? I don't want to put it in the stockmarket at the moment, as I think it's too risky - I just want to put it in a nice little savings account somewhere where it can earn some interest..... I chose the Coop Bank as it had an ethical stance, but is it right to say I can't pay it in there?

Advice very much appreciated!

daveyjp

You need a child trust fund account. All of this information comes in a pack, you can't just put it in any account. You can still open an account without the trust fund cheque. A stakeholder account invests in the stock market for the first 13 years then is moved over to savings account for the remainder of the term.

Read this:

http://www.childtrustfund.gov.uk/

There are ways of replacing a voucher, once it's expired it may be too late.

squibbs25

I would get in touch with IR and see if you can get the voucher re-issued. If you dont invest the voucher by a certain time, it will be invested on behalf of the child, (i think it's IR that do it).
They then send the details to the parent /carer of the child of where the voucher has been invested.


Hope that helps.

Squibbs

modgit

I've just opened our sons with Britannia Building Society and that's a simple, non stock market account.
I'm pretty sure that if you call you will get the voucher re issued.

jo_b_2

carolt wrote: »

I opened an account at the Coop Bank for my son and paid the voucher in through the post office, about 3 weeks ago. Today, I got it back in the post, unpaid 'as it is not a cheque'. It is anyway now also out of date, as I'd paid it in just before its expiry date.

So my questions are: how do I get hold of a replacement voucher, what happens to the £250 if you don't pay it in in time, and, if the COOP is right and I can't pay the vouchers into a normal bank account, WHERE can I pay it in? I don't want to put it in the stockmarket at the moment, as I think it's too risky - I just want to put it in a nice little savings account somewhere where it can earn some interest..... I chose the Coop Bank as it had an ethical stance, but is it right to say I can't pay it in there?

Advice very much appreciated!

Hiya

Martin's written an article about Child Trust Funds HERE which might help.

If you haven't invested the voucher by the expiry date, the Inland Revenue will invest it for you! You can transfer it to a different account though, so don't panic. I'm in the middle of transferring my oldest's account and it is quite a straightforward process.

There are simple cash accounts available - I think Britannia has one of the highest rates.

There is an Ethical Trust Fund available from Family Investments. That's a Stakeholder account which is stocks & shares but it is moved to 'safe' investments after a few years to minimise any risks.

www.myeggnest.com is another useful site about Child Trust Funds and children's savings accounts.

Cullumpster

They won't reissue it :mad: i know as i have spoken to the IR directly.

we are moving soon and i have everthing packed including the voucher, i didn't realise and it has now expired

I called the IR who told me that the government will now choose an account for the £250 and will let me know in due course what it is .

Feel like a rubbish mum

squibbs25

Cullumpster wrote: »

Feel like a rubbish mum

No need to feel bad about it, You are def not the first mum to forget (i did LOL) and your surely wont be the last.
Don't fret.
Just make sure that you chase it up when you have moved.

Good luck,

Squibbs

carolt

Thanks all - I will try to chase it up, though don't have much hope following Cullumpster's experience...

Still don't understand why I couldn't pay it into a savings account if modgit has paid her son's into the Britannia?

Don't really want a Trust Fund account ie one that invests in stocks and shares, even ethically - I thought I remembered from the guide you did have the option of just paying it into an account rather than putting it in the stockmarket....? Will check out Martin's guide and other guides - thanks for links.

This is all new to me as his older sister missed out on £250 by 3 days - she was born JUST before cut-off date for qualifying, when the £250 vouchers were first introduced....... :sad:

Oh, and your son's v cute, Cullumpster!

Katyag

Im just a learner at this as DS1 was born before this was started and DS2 has just had his voucher in so im looking around too.

But what i understand is there are two child trust fund types, the one that uses stocks and shares and one that is a straight cash one but they are both Child Trust Fund accounts. You cant just open any old savings account and put the voucher in there.

This page on the Britannia website explains the differences. http://www.britannia.co.uk/c_savings/product/children/ctf/cash/prod.html

carolt

Boo - just spoke to the Inland Revenue and Cullumpster is absolutely spot-on - as I've missed the deadline, it's going to be invested for me - it takes them 3 months to then send me the paperwork so I can move it to a fund/account of my choice. In the meantime, the stockmarket is at vertiginous highs, the world economy looks like it might be tanking any minute - exactly why I DIDN'T want it in stocks and shares in the first place....

So may have to change it at a loss in December.

Of course, the moral of the story is DON'T FORGET TO PAY YOUR CHILD TRUST FUND VOUCHER IN ON TIME!!!

It's my fault of course - I did pay it in on time, but into the wrong account....:o

squibbs25

IR opened my dd's account (as by the time i got round to sorting it out, the voucher had expired )
They have invested it Mid to Low risk shares.(med risk then moving to low risk x amount of years later)
I think the High risk accounts are if the parents want to chance it.
I believe IR play it 'safe'.

Squibbs