Child Trust Fund lost a lot of money :o(

[FEDup1981]

Today we got Jacks annual statement cos he is nearly 3, and i was shocked to find it had lost a lot of money. We are with the Childrens Mutual, and its a stakeholder account.

Dec 2007 account worth £434.73

Paid in £120 (£10 a month) so 434.73 + 120 = £554.73


Dec 2008 account worth £381.23

I didnt expect it to have decreased that much. I know the financial market is bad, but thought we would still have what we put in. Which would be around £550.

I just hope thats its worth something when it matures.

 

[FEDup1981]

Forgot to say that they also take 1.5% every year for managing the account - losing the money!

 

[Stef]

Im with the Childrens Mutual too.

I was thinking of upping my payment but now ive just read that I think I might just open a bank acoount for her and set up a standing order. At least what ive put in will stay in that way!!

 

[Alexas Mommy]

aw, I am sure it will be worth more when the market is back to normal

 

[FEDup1981]

Im with the Childrens Mutual too.

I was thinking of upping my payment but now ive just read that I think I might just open a bank acoount for her and set up a standing order. At least what ive put in will stay in that way!!

Yeah i would open a bank account for now.

I dont really understand the whole CTF thing, different accounts etc, just hope ive oped the best one.

 

[JayleighAnn]

There was something on the telly about this a couple weeks before Xmas I think it was the news, although not sure

We're choosing just a normal bank account, not one that invests your money in the stock market as this is what the bank man on the news said was the type of account that loses money

He also said that although you may be worried, studies have shown that after the full 18years you do end up with more money than just going by your year by year statements

 

[FEDup1981]

Thanks JayleighAnn. I wish id of seen it. I hadnt given it a thought until i got the statement. Really hope things pick up.

 

[JaysMum+Bump]

i know how u feel. I just got Jays throu as hes 3 on the 14th and his only had the £250 voucher in it (luckily!) as he has another bank saving account which his other money goes into and its gone from Dec 07 - £280 to Dec 08 - £176!!!!! £176 my poor baby!!! That means its dropped by £104 so he has less in there than the trust fund was worth in the 1st place!!!! I was gutted for him but sooo happy i havent put more money into it. Maybe with the current economy it may be worth others who have direct debits going into them to stop them and start paying them into a savings account??? I know hes got another 15 or so years for it to mature but still £104!!!! bless him

 

[reallytinyamy]

I posted a thread about this a while ago. We're sticking to a normal bank account- there are no guarantees on the market and its not our money we are losing

 

[tasha41]

Hopefully it will go back up when the market recovers!!

 

[Leanne&Bump..x]

Sorry to hear, but there is plenty time till he is 18 so hopefulli it will be worth alot more.

This is the reason i am opening a savings account with this current economy.

 

[bev309]

I am SO glad I cancelled my DD now!! Will set up a separate bank account for the money to go into from now on!!!

 

[littlelady]

leeons money had dropped when we recieved out first statement thing by over £100 but there is only one account you can open you dont get much choice but a stakeholders account

 

[Always&4ever]

We have opened a bank for Jasmine aswell.

 

[marley2580]

We have both for Kaya, you can only put the trust fund in a stakeholder account so there's no choice. we put birthday money, bankie money etc in the savings account - she's loaded lol

 

[reallytinyamy]

There are three different types of account you can out it in, 2 are stakeholder and one is savings only

 

[XKatX]

We have opened a bank for Jasmine aswell.

A whole bank to herself - lucky girl!!!! (Sorry, couldn't resist!)

We still have Olivers voucher as we can't decide what to do with it. Will make sure we have a serious look at things before we deposit it now.

 

[FEDup1981]

i think i might cancel my DD until things start getting better.

 

[Jem]

I can't find my statement now but I know what you mean as from what I remember it hadn't made anything and I couldn't understand why. Now I know, how gutting x

 

[PeanutBean]

Don't worry too much, over 18 years the market will change a lot and as long as your stakeholder is a low risk one you're likely to end up with a good profit. It's only now that things are iffy but markets to go up and down.