Ann and Bob are married, and both currently on disability benefits, but
both looking to get back to work.
They have a child under one year old.
They want to create some savings for that child.
Do they get a child trust fund? How do they pick one? Or do they get
something like a Nationwide "Smart Account"?
Ann and Bob are unlikely to be able to put more than, say, the amount
they get in child benefit into the account each month.
I thought the whole idea of child benefit was to provide money for
people to raise their kids properly when they wouldn't otherwise be
able to afford to do so. In these times of austerity, if they can
afford to put all that child benefit away into a bank account it
raises the whole question about how necessary some of these benefits
Very unsympathetic replies there. Parents have been known to
sacrifice there own well-being for their offspring, you know.
As for the OP, I'm probably wrong, but hasn't the government sponsored
child savings thing been abolished? So take your choice of what you
The child trust fund was indeed abolished by the new government, as part
of the instant austerity/responsibility measures announced by George
Osborne. The kid in question is 'under a year old', so may well have
been born before the policy was changed.
I don't get this. I am quite a generous soul by nature, but surely the
child once adult could be reasonably expected to look after themselves?
Why should this child have an advantage over any other whose parents
didn't arrange some manner of severance payment? And in the meantime,
I'd guess and say the parents need every penny they have to make the
next 17 years as comfortable, happy and secure as they can. Coat fetched.
Yep! It is one of the petty things this government has done away
To get back to the OP, Nationwide always used to be top of the list of
children's saving accounts, but I'm not sure whether that is still the
On Fri, 18 Mar 2011 08:44:02 +0000, Tiddy Ogg wrote:
There was a 2 phase abolition - the very generous original 'top ups' were
much reduced (but to a still generous) amount; and then they were
The child missed the original scheme, but does qualify for the transition
"we're closing this and you all get less money" scheme.
That's right, but in this case it sounds as though they were claiming
it. The fact that they are then able to put the full amount of the
benefit away as savings suggests it was not really needed.
Remember that these benefits don't come from nowhere. Someone else had
to work and pay taxes to provide this. That person may have liked to
have had that money for his own children.
On Fri, 18 Mar 2011 09:35:28 +0800, Chris Blunt wrote:
Child benefit is a universal benefit, it is not related to income.
The OP is clear that the *maximum* the parents can save will be the
amount of child benefit; they will not be able to afford this every
That information is useful to help people avoid suggesting products which
need large opening balances or minimum monthly deposits or a large
balance before any interest kicks in.
Some parents chose to drink; smoke; drive; have cable tv; have holidays.
These parents don't, and would like their child to be able to (for
example) afford tertiary education; housing; etc.
"Thanks" for the content-free reply.
Not for much longer
IMHO there's pretty much nothing to suit right now. Interest rates
are very low and inflation is very high. All the 'best' savings
products have too many strings attached. If you are prepared to keep
moving the money around many banks offer a higher "introductory" rate
but, even then, the money would be dropping in real terms.
Why the assumption that people would have to drink, smoke etc in order
to be poor?
In addition I would expect that poor people, with savings, would get
less help with tertiary education.
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