Child Trust Fund - worth opening one or not?
19 August 2011, 11:47 AM
#1
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Child Trust Fund - worth opening one or not?
Our little one was born on the cusp of the CTF closing - so we can still open one and use the £50 government cheque.
Is it worth opening one for him - or should we hang on and get a Childrens ISA when they are available at the end of the year?
From what I understand the CTF are stocks and shares based for the first 13 years, then go onto interest based for the remainder.
Where as with the ISA I can have a mixed portfolio and move them about as and when.
Thoughts?
Is it worth opening one for him - or should we hang on and get a Childrens ISA when they are available at the end of the year?
From what I understand the CTF are stocks and shares based for the first 13 years, then go onto interest based for the remainder.
Where as with the ISA I can have a mixed portfolio and move them about as and when.
Thoughts?
19 August 2011, 12:32 PM
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Hmmm. not sure. I thought ours was fixed. we've certianly not been charged for running it.
As far as I'm concerned it is a tax free account and at the end of the day, its £50 is it not?
In fact, sure i remember reading things about if you never top it up it will be worth about £1k by the time they are 18 but maxing it out could be 10 x that.
5t.
As far as I'm concerned it is a tax free account and at the end of the day, its £50 is it not?
In fact, sure i remember reading things about if you never top it up it will be worth about £1k by the time they are 18 but maxing it out could be 10 x that.
5t.
19 August 2011, 12:33 PM
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I'd open a standard savings account and just put regular amounts in there. Can use it to save up for their xmas and birthday pressies or not touch unitl they are 16 or 18.
19 August 2011, 12:34 PM
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Our little one was born on the cusp of the CTF closing - so we can still open one and use the £50 government cheque.
Is it worth opening one for him - or should we hang on and get a Childrens ISA when they are available at the end of the year?
From what I understand the CTF are stocks and shares based for the first 13 years, then go onto interest based for the remainder.
Where as with the ISA I can have a mixed portfolio and move them about as and when.
Thoughts?
Is it worth opening one for him - or should we hang on and get a Childrens ISA when they are available at the end of the year?
From what I understand the CTF are stocks and shares based for the first 13 years, then go onto interest based for the remainder.
Where as with the ISA I can have a mixed portfolio and move them about as and when.
Thoughts?
Ours was £250 for both children which we put in the bank and haven't added to it as the account cannot be accessed until they are 18.
19 August 2011, 12:48 PM
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I use family investments. no management fees.
stick money in each month, picked stocks and shares option as they are alwasy best route, esp on a long bet like this for 18 yrs.
its made good money actually.
stick money in each month, picked stocks and shares option as they are alwasy best route, esp on a long bet like this for 18 yrs.
its made good money actually.
19 August 2011, 01:21 PM
#7
We have our daughters cash CTF account with Yorkshire building society. She has a few grand in there at the mo - last year she got about £70 interest. You shouldnt be paying any charges IMO
Even though the interest rate is pretty shocking im glad i didnt open a stocks and shares based account
Even though the interest rate is pretty shocking im glad i didnt open a stocks and shares based account
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19 August 2011, 02:06 PM
#8
The other problem I have is that the money belongs to the child..........they are meant to use it for education and the like. If they wish they can use it to buy smack 
Shaun
Shaun
19 August 2011, 10:41 PM
#11
I'll have a look again......the letter arrived just before we went to Wales (blimey it was wet) and I threw it in the corner of the kitchen ! we have had it 6 years and I wonder if this is the first time they have charged.
Thanks
Shaun
Thanks
Shaun
20 August 2011, 07:58 PM
#12
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The theory is that CTF's are going to be forgotten by both the public and the management companies, and thus the profits will dwindle. The best option is thought to be the Child ISA, and it is hoped that people may be able to convert CTF's to CISA's, but i doubt it will happen. In a couple of years the CISA will be superseded by something else and that will become a waste of time and money too 
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