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please help! does anyone know anything about...

kirstyPM5L Avatar
8y, 2m agoPosted 8 years, 2 months ago
child trust funds? I have 2 children, when I had my first son I opened up a savings account at the halifax then I recieved the governments £250 cheque and opened up a trust fund account with the halifax then baby no 2 came along and I did the same, so they each have an account I set up and an account with the £250 cheque in. speaking to family last night they have told me I shouldn't have opened a trustfund account with the halifax because it is an ISA and theres a chance my kids will lose all their money. now they tell me!
Q1 are they right?
Q2 can I swap their money to another trustfund account with another bank?
Q3 when they recieve their next cheque from the government can I put that in a different account at a different bank?
please help I feel like I've messed it all up for my kids
kirstyPM5L Avatar
8y, 2m agoPosted 8 years, 2 months ago
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#1
yes its right and yes you can change it at any time,
#2
dont think thats right at all
The way I see it you are holding the money on trust for your children until they reach the appropriate age. You are under a duty therefore to invest the funds with due care etc which you have done by putting it an account which will accumulate a higher rate of interest

dont see any reason why the fact that it is in a ISA would jeopodise it. Did your family say why they thought this way?
#3
missismop
yes its right and yes you can change it at any time,


why is it right?
#4
i know you can swap to another trust fund with no probs.. i recently had my statement through for my first child and we had already lost money so i will switch it over to another one.
im pretty sure a savings account is the most secure.. i opened an account which invested in shares so obviously it can go up or down
#5
No bank account is 100% safe. Doesn't mean its likely to go bust though.
#6
roryk83
dont think thats right at all
The way I see it you are holding the money on trust for your children until they reach the appropriate age. You are under a duty therefore to invest the funds with due care etc which you have done by putting it an account which will accumulate a higher rate of interest

dont see any reason why the fact that it is in a ISA would jeopodise it. Did your family say why they thought this way?


well my sis in law has just had her first baby and was talking about openeing his trust fund account and that she wouldn't go with the halifax as it was an ISA trustfund and that she was going with the ABBEY as it was just a savings trustfund, then the whole room joined in saying I shouldn't have put thier money into a ISA as they may lose it all?! I thought all trustfunds were the same?
#7
roryk83
why is it right?


it is right read the small print :)
#8
kassy2005
i know you can swap to another trust fund with no probs.. i recently had my statement through for my first child and we had already lost money so i will switch it over to another one.
im pretty sure a savings account is the most secure.. i opened an account which invested in shares so obviously it can go up or down


yer I had my eldests statement through too and he had lost money, this is why they said I'd done it wrong? :thinking:
#9
can anyone recommend a trustfund account?
#10
I work for a bank,this is a long term thing so the fact that it has probably lost money means nothing at the moment you will probably find that most have i know my 3 have.I'd say don't worry but you can swap if you want but my opinion is that with the market like it is they are mostly the same.Hopefully by the time they are 18 they would have made money!:thumbsup:
#11
savings accounts, stakeholder accounts or accounts that invest in shares are the three different ones you choose from
#12
missismop
it is right read the small print :)


small print to what?

I havnt read any documents etc relating to this money the government gives
I'm just applying general principles
#13
francescaseaman
I work for a bank,this is a long term thing so the fact that it has probably lost money means nothing at the moment you will probably find that most have i know my 3 have.I'd say don't worry but you can swap if you want but my opinion is that with the market like it is they are mostly the same.Hopefully by the time they are 18 they would have made money!:thumbsup:


so what account is my sis in law on about? she seems to think she can put the cheque into a trustfund account and it won't lose money it will just be a savings account? thanks by the way
#14
Depends whether it's a "with risk" account doesn't it?

It could be a cash isa and be safe or it could be a share isa and therefore not safe?
#15
kassy2005
savings accounts, stakeholder accounts or accounts that invest in shares are the three different ones you choose from


which is best? I'm so confused!
#16
roryk83
small print to what?

I havnt read any documents etc relating to this money the government gives
I'm just applying general principles


when you open a trust fund account most invest in shares so it will go up and down ,the small print tells you this ,:)
#17
Benjimoron
Depends whether it's a "with risk" account doesn't it?

It could be a cash isa and be safe or it could be a share isa and therefore not safe?


how do I know? should I ring the halifax?:thinking:
#18
kirsty1981
how do I know? should I ring the halifax?:thinking:


ring them ,make an appointment to talk about it:thumbsup:
#19
http://www.childtrustfund.gov.uk/templates/Page____1218.aspx

this will probably explain it better than i can :)

depends if you want to risk that chance that it might go up significantly more than if you just put it in a savings account
( i think lol )
#20
kirsty1981
which is best? I'm so confused!

It depends on how long uv'e got! a cash isa is not linked to shares and will simply accur interest linked to base rate.A stocks and shares isa links to the stock market and the company will invest in what they think is best,this goes up and down all the time and has more risk but also potential significant gains!
1 Like #21
Stick in a cash account, shouldn't encourage kids to gamble on the stock market!
#22
right just spoke to a lovely man at the halifax and he has explained all and told me if I find a cash savings account provider that I like to request a form off them and they will swap the accounts over for me. panic over! thank you everyone!

Right wheres the best place to put their money now?! my boys are aged 5 and 1 so I've got a few years to save for them!
#23
Has the money dropped in the account? If so may be worth leaving it there.
1 Like #24
quite a few offer incentives on signing up and putting in so much a month.. such as asda offering a £25.00 gift card etc ...

im still hunting for one for my son so cant really help anymore atm :)
but il keep watching this thread lol
#25
Benjimoron
Has the money dropped in the account? If so may be worth leaving it there.


yer its dropped, do you think I should leave it there till it comes back up or whip it out quick?
#26
kirsty1981
yer its dropped, do you think I should leave it there till it comes back up or whip it out quick?


It's up to you, a cash account will have some safety but the likelyhood is that shares will gain what they have lost recently at some point.

It's a gamble at the end of the day.
#27
kassy2005
quite a few offer incentives on signing up and putting in so much a month.. such as asda offering a £25.00 gift card etc ...

im still hunting for one for my son so cant really help anymore atm :)
but il keep watching this thread lol


I've just had a little look myself, its quite hard and you have to read really carefully to see the terms. the man on the phone said to look on the governments website as they have a full list of all the places there. thanks for your help, I never knew there were different accounts, I think they should advise people better when they recieve their childrens cheques, how many other people out there don't realise and maybe would switch if they knew?
#28
Benjimoron
It's up to you, a cash account will have some safety but the likelyhood is that shares will gain what they have lost recently at some point.

It's a gamble at the end of the day.


Think I may wait till their dad gets home, or I'll be at risk of making yet another mistake!:?
thanks for your advice much appreciated x
#29
kirsty1981
Think I may wait till their dad gets home, or I'll be at risk of making yet another mistake!:?
thanks for your advice much appreciated x


No worries, personally I'd just stick with a cash account. Has the account dropped much? If it hasn't dropped much I would move it out.
1 Like #30
Benjimoron
No worries, personally I'd just stick with a cash account. Has the account dropped much? If it hasn't dropped much I would move it out.


from memory I think it has dropped about £80 or so, statement is upstairs! I think I feel like I want to take the money out and put it somewhere safe for their sakes, just because I have thought that it was like a savings account and it never occured to me they may lose their money so I feel guilty now and want to quickly make things right for them! I'll have a chat with their dad tonight. thanks again:-D
#31
I thought they were all based on shares so will all be loosing money at the moment.

We didn't like the fact that they automatically get the money at 18 so we have only put the £250 she has a seperate account for all the rest of the money she gets which is at a fixed interest and tax free

worto.

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