Child trust fund matures

LNJMJSweepity23

Hello my son is now nearly 18 and his CTF matures soon. We are a disabled family and find money matters difficult. I've paid into his CTF all along so he will get a lump sum- not huge by any means but okay. My question is... where do we put it next? He's still in school so happy to lock it away for at least another year but what gives us the best rate? I find all the info overwhelming and confusing.

cloud_dog

Is it in cash or invested?

Your son will need to go through a process for identification before the CTF provider will release the monies to go elsewhere (a new product, and or provider).

If he wants to keep it as cash, then after age 18 he is an adult and you should simply look at opening the best 1 year fixed rate savings account.

https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#fixedsavings

refluxer

As mentioned above, a one year fixed rate account sounds like it would meet your needs - just be aware that, with the vast majority of accounts of this type, he won't be able to access the money during that time.

If you find the subject of savings accounts confusing, then it might be an idea to read the whole of the page linked to above, which explains the differences between the main types of accounts and shows the typical interest rates you'd expect to get from the highest-paying accounts of each type...

https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

LNJMJSweepity23

Thank you. He will be an adult but I act as his appointee. SW can help with applying but just need to know what to apply for! I try to read it but it all becomes jumbled. Thanks for help. Is the identification just providing ID documents?

LNJMJSweepity23

It's in a CTF that used the stock market

eskbanker

LNJMJSweepity23 said:

It's in a CTF that used the stock market

An investment product will probably have made sense when looking to accumulate money throughout his childhood, locked away until he reaches 18, but at this point the key thing is to ascertain when that money is likely to be needed in the future, and for what.  If he's likely to need access within the next few years, then using cash savings accounts will make sense, but if it's long-term money then reinvesting may be more appropriate.

xylophone

He will be an adult but I act as his appointee. 

Do you mean that your son is unable to manage his own affairs?  Or are you simply saying that you were the "registered contact" on the CTF account?

LNJMJSweepity23

Unable to manage

Yes cash based sounds best at this point. But happy to lock away for the next 9 months/year so we can consider what next.

cloud_dog

LNJMJSweepity23 said:

Thank you. He will be an adult but I act as his appointee. SW can help with applying but just need to know what to apply for! I try to read it but it all becomes jumbled. Thanks for help. Is the identification just providing ID documents?

It will be yes.  You will (probably) need the two forms of ID (passport, drivers licence, etc), and one with their address (bank statement etc).

LNJMJSweepity23

ID is easy!

Sea_Shell

LNJMJSweepity23 said:

Unable to manage

Yes cash based sounds best at this point. But happy to lock away for the next 9 months/year so we can consider what next.

Once he turns 18, the deputyship you've had until now, may not be enough/valid.   This has been in the news recently.

You may have to apply to the court of protection to be granted full power of attorney to handle his affairs. ☹️