Any advice on where i can invest my baby's child trust fund?

Question

Ideally i don't want it attached to stocks and shares but would like a high interest rate, i would also like to be able to make regular payments into the account. I don't want my child to be able to touch the money till he or she is 18. Baby is due this week, just planning ahead.

Answer 1

I would look into an UGMA or UTMA (Essentially the same just the UTMA allows for restricting access up to age 25).  Unfortunately, in order to get a high interest rate, you need it invested in equities.  Otherwise, the best you could hope for might be 6%.

6% may sound high to some, but factor in an average inflation of 4-5% and that 6 quickly drops to a 1-2% growth.

If it is truly a trust fund, then talk with the people who are currently managing it.  If it hasn't started, then the above is a good place to start.