child trust fund

[trixipaws]

what do i need to do to get the £250 voucher?

and which type of account is best, apparently there are savings, shares and stakeholder accounts?

and is there any difference which bank u go with.

is there a need to open a separate account for gifts of money or should we put her money in the trust fund account (she's got £55 so far- more than her parents lol!)

whats everyone else got?

sorry for all the questions!
thanx in advance

 

[muppetmummy]

James has an account with barclays. If I remember rightly there were 3 options, one was just savings based so it only earns interest. One was shares based so its down to quite a bit of luck, although it could earn a lot more money than the savings option, there is also the risk it could earn less depending on the stock market.
I went for the third option which was a combination of the two. Part of the money earns interest, the other is invested in the stock market. I think thats right!
We pay £10 a month into the account and consider it as James' University fund (if he wants to go of course!)

 

[Nic'n'Keeley]

You wil get the child trust fund check a few weeks after you have registered Melissa

Its upto you where you put it But if you wanna add to it i think its only £1200 you can add a year

Hope that helps

 

[Nicola]

Each bank will offer you the option of a standard savings, stakeholder (where it's floated on the stock exchange, the bank will invest on the childs behalf into companies and so forth - much greater return over a long term period but riskier in the shorter term) or one that is half and half where the savings half is safe, the other half is dependant on share prices/investment/economy etc - earns better long term than standard savings but less so than a full stakeholder. Long term the stakeholder accounts always out preform the others in interest earned etc. You can pay into the account (any option) monthly if you choose, we are considering the HSBC, minimum payment is £10 monthly so nothing at all to get it going but like an ISA account they have yearly maximum deposit levels - not sure what the CTF limit(s) are but even £3,000 a year is only £250 per month, if it is a mear £1,200 then that works out at £100 monthly, you have £55 this month anyway. Perhaps a good idea would be to open a regular savings account (or use your bank account if you have a stable balance each month) and have them pay a direct debit into the CTF monthly that way you know it's being topped up and the account is helped to grow. Speak with the bank(s) you are intersted in having the account with, there will be someone there best able to advise you - you might have to make an appointment with certain banks though as the investment team are not always in that branch daily.