Found 7th Nov 2007
hi looking for best childs trust fund for interest and free gifts
looked at tescos but they charge per year to maintain the account is this normal ????

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post office? Free 10 quid voucher

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I opted for the yorkshire building society with both my children - just because it was a non stakeholder....

Original Poster

thank you

The main thing to decide is whether you want the fund to be stakeholder, shares, or interest only. Stakeholder is a good 'medium bet', as it carries low risk (but still some risk), but has (probably) better yields than an interest only account. Obviously a full share account carries the most risk, but potentially has very good returns indeed.

Once you've decided between these 3 types, then should then start looking into voucher incentives and annual charges.

One suggestion (though) is that CTFs aren't necessarily the best place to put any extra contributions. The main reasons for saying this is that (1) the money cannot be accessed until the child is 18, whatever the reason .... and (2) the money is owned by the child, and at 18 they can chose to spend it however they want... so there's nothing to stop them blowing all of your hard-earned pennies on alcopops. For those reasons, I'm putting top-up contributions into other accounts, which I can access should the cr*p hit the fan, and which DD won't know about until I decide to tell her (if I do!)

HTH
Melissa

I completely agree with Melissa - we put our £250 CTF into the HSBC stakeholder account but don't add anything to it. We figurered that whatever was in it when she is 18 is a bonus.

And as for money that we save for her (or grandparents give her), we opened a Halifax regular saver account where she earns 10% interest. At the end of the year it transfers into their normal 5.something% childrens account but I just withdraw it on a monthly basis and feed it back into the high interest account. Like Melissa says, we have control over that and can keep it for something useful.
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