Ive been doing a bit of research this afternoon so I thought Id share my new pearls of wisdom.
As Im sure you know babies born after 2nd August dont get the £250 voucher, they get £50 voucher. From January the vouchers will be completely stopped.
With the system stopping existing acounts will continue but obviously people wont be opening child trust fund accounts, as the only way to open them is with a government voucher. because of this some banks arent offering the accounts anymore;
http://www.lloydstsb.com/savings/child_trust_fund.asp
Choices of where to open the account is already limited so I would imagine threre will be less and less options over time.
You obviously want the money to be in an account with the highest interest rate going, and youre allowed to switch accounts anytime to get the best rate. but youre only allowed to switch to a new child trust fund account (not any other type of savings account)
Im worried if we put money into a child trust fund accound and the interest rate drops too low I'll want to move it but wont be able to open a new
account anywhere. this will take competition out of the market so providers will lower interest rates because youre locked in.
Obviously this might not happen but im not gonna take the risk. What im gonna do is invest the voucher into a child trust fund then not add anymore to that but instead open a normal child savings account. I will always be able to move that money to the best rates.
Just thought Id let you know as you might want to think about whether youre locking money for your child into a scheme which might not give you the best return.
bleugh, money, my heads spinning!!
As Im sure you know babies born after 2nd August dont get the £250 voucher, they get £50 voucher. From January the vouchers will be completely stopped.
With the system stopping existing acounts will continue but obviously people wont be opening child trust fund accounts, as the only way to open them is with a government voucher. because of this some banks arent offering the accounts anymore;
http://www.lloydstsb.com/savings/child_trust_fund.asp
Choices of where to open the account is already limited so I would imagine threre will be less and less options over time.
You obviously want the money to be in an account with the highest interest rate going, and youre allowed to switch accounts anytime to get the best rate. but youre only allowed to switch to a new child trust fund account (not any other type of savings account)
Im worried if we put money into a child trust fund accound and the interest rate drops too low I'll want to move it but wont be able to open a new
account anywhere. this will take competition out of the market so providers will lower interest rates because youre locked in.
Obviously this might not happen but im not gonna take the risk. What im gonna do is invest the voucher into a child trust fund then not add anymore to that but instead open a normal child savings account. I will always be able to move that money to the best rates.
Just thought Id let you know as you might want to think about whether youre locking money for your child into a scheme which might not give you the best return.
bleugh, money, my heads spinning!!
morgn has £200 
and only £50 in his child trust fund. he shouldve been born 11 days earlier!! we're putting £10 a month in for him not a lot but OH worked out it'lll be 2 grand by the time hes 18! 
