Is there a savings account for children with the same benefits as a trust fund?

beatroutes

Is there a savings account for children with the same benefits as a trust fund?

I have two children, one has got a trust fund voucher and the other was not eligible for the voucher. I am looking to get a savings account with the same or similar benefits as a child trust fund (I don't want to put regular amounts in)

Can anybody recommend anything?

Fatboy_NSS

It depends what sort of CTF you want. You'll find it hard to open a stocks and shares based investment for just £250 if you're not making regular payments in, as it wouldn't be anywhere near the minimum investment. If it's just a cash CTF you're interested in then most banks pay a similar rate on their kids' savings accounts as on their CTFs, so take your pick. You wouldn't get the special tax treatment that a CTF gets, but chances are your kids won't be taxpayers before they're 18 anyway so it wouldn't make any difference.

grumbler

Fatboy_NSS wrote:

You wouldn't get the special tax treatment that a CTF gets, but chances are your kids won't be taxpayers before they're 18 anyway so it wouldn't make any difference.

May be I am wrong, but I think this is not correct. If money is given by parents all interest above £100 per year is taxed at parents' rate.

Best Child Savings (and use your child for a sneaky tax free allowance) article.