Child Trust Fund Account V Childrens Savings account

[Louise07]

Hi, I would like to start putting a small amount of money into a savings account each month for my daughter who is aged 3, plus any birthday / christmas money. She has got a child trust fund account open at the moment which was really only opened to deposit the government voucher she recieved at birth. I dont know whether to just keep that account and deposit money into it or would it be better to open a new childrens savings account. Im not too keen on the idea that whatever money is in the CTF will go straight to her when she is 18. I'm not sure what the pros / cons are of CTF / normal childrens savings account. Any help would be apprciated. Thanks

[cathfromsaron]

i would agree that the money going directly to the child at eighteen - whatever their level of maturity or sensiblity at that time - is a bad idea!

SO for my grandson we are saving up in our own names, and will give/lend the money as apppropriate at the time! lol!

the CTF can still accumulate and be given over then, but at least it's not my money he will waste!

cath x

[ojread2]

Blimey, control freak alert
It's their money, what they do with it is up to them. If they want to waste it, let them. They will learn a valuable lesson
So, I suggest if you wish to keep it as a carrot, open a savings a/c in your name, save into that, and you can barter and use it as a bribe then

As the amount given by the government is pretty small, allow them to use it as they wish. It may well not be what you want them to do with it but it is their money, not yours

[crisgal]

after looking into (at length!) long term savings for my own children, we decided on children's bonds and some premium bonds. I know there's no interest on the PB but over a long time, there are many many chances to win various amounts.
Money saving expert, martin lewis recomended them too.

[Hopkirk]

If they can't have access to their own money at 18, what age would you consider acceptable?

[cathfromsaron]

i disagree, ojread2! am i a control freak who just wants to avoid their child getting into danger?

my advice is sensible - and also reflects martin lewis' advice - just in case it would fund drugs, be stolen from them or whatever in the future! you have no control over the CTF, unlike an account you open yourself!

good advice crisgal ... i may get some premium bonds too! much more fun!

[cathfromsaron]

oe of my daughter's is 22 and my parents haven't released funds to her, the other is 26 and had hers when she was 21!

* btw my 22 year old has been taken advantage of by 'friends' and has lost many possessions and 2 tenancies!

a family knows best, depending on the individual's circumstances!

[crisgal]

personally, i'm only talking a few hundred quid for mine, and they can have it at 18 to do whatever they like. I will try and encourage them to keep saving some though!
If we were talking thousands, then i think 18 is too young.

[bednobs]

i have a savings account in her name, but with me as a co-signer. She is only 4 months old, so i have complete control of it. I too am wary about an account that goes straight to them on their 18th birthday -who knows what she will be like then, and if i am scripimg to save for her, i don't want it spent on drugs, or a tattoo etc etc

[Louise07]

Thanks everyone, I think I am going to open up the Halifax children's savings account which is fixed at 6% for a year and then decide whether to keep it or switch accounts after a year depending what the interest rate is.