Saving Account For My Children

[sondre]

Hello,

When i had my first son(6 years ag0),i got this £250 voucher , and then kept paying £10 in to this account monthly for about a year .

Then i stopped as we had money trouble,and never remembered to renew it (good thing lol).

I didnt even understand that this was shares ,i thought this was savings account,and there would be interest paid each year.

But looks like the money can go up and down each year,and you are not guaranteed any interest or even to have it all back when kids grow up.

Read some reviews online,some poor woman paid £25 a month for 10 years (total 3,000) and her son got back £2600 ....

Now,that things are a lot better for us (with money) i would like to open saving accounts for 2 of my boys an pay £10 a month for each,so it would be about £2000 after 10 years .

What is the best way to do it ?

At the moment hallifax i think offer 6% fixed for 12 months.
Sounds really good,but what will happen after 12 months ?
Will i be able to move the money to different bank if their interest rates drop and i find better deal ?

Also,what about this money that they got in their trust bond accounts ?
Can i move them to proper bank account ? (so they dont lose what they got ,and get a little interest).

Thank you

[factor-fiction]

I think you need a designated child trust fund account- I don't think you can just pt the voucher into any old savings account. There is nothing of course to stop you opening a savings account of your choice and putting your own money into that but you won't be able to put the government voucher in

[bednobs]

voucher does not exist any more factor

[bednobs]

ps i am in exactly this position - wondering what to do re child savings. i have looked at children's isas and don't favour them at all 1) because most children don't pay tax anyway and 2) the money is theirs as soon as it's in the account and they get it at 18 no matter what. You have no control over giving it to them - the money is not yours. What if when they're 18 they are a rebel and want to spend it on drugs and rock 'n roll?

[ubasses]

I do not know anything about the Trust Fund voucher so do not know if you can get it out before a certain time, but if you have to leave it until he is 18 things could change drastically in the 12 years and may be worth a lot more.

It sounds like the Halifax are offering a bonus for 12 months, read the terms and conditions as you may have to give notice before removing the money. You should then be able to look for the best deal at the time and put it with the new Bank.

[factor-fiction]

Hi bednobs, if you mean vouchers are no longer issued, I agree- but I was referring to the proceeds of the voucher sondre received 6 years ago

[SMP]

The original Child Trust Funds cannot be transferred to another type of account. The money is paid out only when the son/daughter reaches 18 and only to them. There has been some hoohah about not being able to transfer this money to the new Child Isa's.

[ThinkIFA]

The Government are currently in consultation regarding the merging of Child Trust Funds & Junior ISAs and the Treasury have said that they hope to have an announcement regarding the matter before Christmas this year (2013)