Darth Vader Posted June 18, 2012 Share Posted June 18, 2012 We've recently received our annual review for our child trust funds. We didn't put much in last year -only £132 per child. They have the same type of account. Despite paying in £132 per child last year, their actual balance has gone up only £71.41 this year. So where has the other £60.59 gone? I'm no mathematician but even I can see that's almost half of what we've put in that is not showing on the balance. If I'd have put it straight into a bank account at least I'd have what I started with. Am I right to be cheesed off? Can the Child Trust Fund providers get away with this? Should I follow my instinct and cancel future direct debits? Will I incur a penalty? Can I ask them to just manage the account as it stands, without paying anything else in? Sorry to bombard you with questions, I'm just really out for any advice, please. Link to comment Share on other sites More sharing options...
cgksheff Posted June 18, 2012 Share Posted June 18, 2012 Stop paying in. They were only worth getting the bunce from the government. Link to comment Share on other sites More sharing options...
Darth Vader Posted June 18, 2012 Author Share Posted June 18, 2012 Thank you, I think you're right. I know all accounts are different but do you think we will incur a penalty for stopping? Link to comment Share on other sites More sharing options...
cgksheff Posted June 18, 2012 Share Posted June 18, 2012 Thank you, I think you're right. I know all accounts are different but do you think we will incur a penalty for stopping? I don't know which Fund you are in, but I'd say that it is highly unlikely. Give them a call. Link to comment Share on other sites More sharing options...
Darth Vader Posted June 18, 2012 Author Share Posted June 18, 2012 I don't know which Fund you are in, but I'd say that it is highly unlikely. Give them a call. I hope you're right. Thanks for your help. Link to comment Share on other sites More sharing options...
maza87 Posted June 18, 2012 Share Posted June 18, 2012 Did you choose a stakeholder or shareholder account rather than just savings when you opened? That's the only think I can think of which would make your balances differ from what you've paid in... Link to comment Share on other sites More sharing options...
Leah-Lacie Posted June 19, 2012 Share Posted June 19, 2012 Mine drops sometimes, then the next year goes up by more than what was paid in, its invested in shares so as share values drop, so does the account value. As they drop they're supposed to buy them out and invest elsewhere though, to try to ensure the best value. My daughter's original £500 has (in May this year) become £1200, but my Nan pays £100 a year in (I haven't bothered myself, since the value dropped in its first year), and its 8 years old. Link to comment Share on other sites More sharing options...
Darth Vader Posted June 19, 2012 Author Share Posted June 19, 2012 Did you choose a stakeholder or shareholder account rather than just savings when you opened? That's the only think I can think of which would make your balances differ from what you've paid in... That's a good question. I'll have to find out. Link to comment Share on other sites More sharing options...
Darth Vader Posted June 19, 2012 Author Share Posted June 19, 2012 Mine drops sometimes, then the next year goes up by more than what was paid in, its invested in shares so as share values drop, so does the account value. As they drop they're supposed to buy them out and invest elsewhere though, to try to ensure the best value. My daughter's original £500 has (in May this year) become £1200, but my Nan pays £100 a year in (I haven't bothered myself, since the value dropped in its first year), and its 8 years old. I get the feeling I'm just paying for inflated bankers' salaries, that are not looking after my money, like a mug. Link to comment Share on other sites More sharing options...
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