Savings Account Calculators and Child Trust Fund
Thursday, 23 September 2010 | Admin
Hi everyone! Sorry for the lack of posts in recent weeks, but we've had a house / office move, trade show in Cologne and school holidays. More info to follow shortly, including some great news, so watch this space!
In the meantime, we have a guest blog from Les Roberts (sleep deprived dad and writer for www.moneysupermarket.com) helping to add some clarity on where best to place your child trust fund - payments to which will cease from 1st January 2011.
If you’re reading this blog then the chances are that you will be affected, or know someone that will be affected, by the Government’s changes to the Child Trust Fund.
Either that or you’ve become aware of the magic cleaning properties of baby wipes via some other avenue!
But if you’re in the former group, here’s a quick overview of the changes that have been made to the Child Trust Fund:
From August 1st, payments at birth were reduced from £250 to £50 for most families and from £500 to £100 for families with an annual household income of less that £16,190.
Children who reached the age of seven after July 31st will not be eligible for the £250 Age 7 Payment.
All payments will be stopped from 1 January 2011.
All of which is about as welcome as a turd in a swimming pool…something I had the misfortune of witnessing at an aqua-tots group not so long ago! The screams and splashing around was like something out of Jaws, most unwelcome!
Anyway, the good news for those that have already benefitted from the Government’s Child Trust Fund payment and have an account is that this will run as normal until the child is 18.
That means that family and friends will still be able to add up to £12,000 a year into the account and no tax is paid on any income or gains in the account.
But for those of you that are due to become parents before December 31st (how many take away curries are going to be sold to pregnant women in the run up to new year?!) or for those of you that are still to use your Child Trust Fund voucher it’s worth checking a
Calculators can help you to decide which savings account to open because you can work out exactly how much interest you’ll earn depending on which deal you go for.
For example, because no withdrawals can be made on a Child Trust Fund account, you won’t need an account with unlimited withdrawals so you can look for one that offers a higher rate of interest on that basis.
It all sounds dreadfully dull but I think all of us would have benefitted from a lump sum when we turned 18, to put towards a new car, a place to live or university fees/bargain booze vouchers!
The three main types of account on offer via the Child Trust Fund are currently: Savings accounts, Accounts that invest in shares or Stakeholder accounts and more information on these can be found at the Child Trust Fund website.
This site also gives more information on Ethical and Shari’a accounts.
And the thing to remember is that even the smallest amount each month can make a massive difference in the future.
Savings Account Calculator
Article written by Les Roberts sleep deprived dad and writer for Moneysupermarket.com