child trust funds

[Al-ghurabah]

Salam
do any of you use this thing.. government gives you £250 to put for your vhild and cant use it til they are 18.. headstart for saving for them..
which bank do you use .
recieved cheque for the lil one the other day..:D

[Eemaan]

its so you dont spend it larging it on a friday night al-g :up: any bank :smack:

i thought you were talking about baby bonds. we got those. my lil sis has too much mahoola for a kid in primary school :eek3:

[nami]

Salam
do any of you use this thing.. government gives you £250 to put for your vhild and cant use it til they are 18.. headstart for saving for them..
which bank do you use .
recieved cheque for the lil one the other day..:D

Never heard of this. £250 a week, month, year, or just a one off?

[Al-ghurabah]

Never heard of this. £250 a week, month, year, or just a one off?


one off bro

[heaven2002]

Salam
do any of you use this thing.. government gives you £250 to put for your vhild and cant use it til they are 18.. headstart for saving for them..
which bank do you use .
recieved cheque for the lil one the other day..:D

you could invest in it premium bonds in ur baby's name

[Al-ghurabah]

you could invest in it premium bonds in ur baby's name
hey??? dont go getting all complicated :(

[.: Anna :.]

does the gov giv it for every baby? i didnt hear of this. not bad... they cd give more lol but is okay!

[ze leetle elper]

You have to go to your bank/ building society and you can open either a savings acc/ shareholder/ or stakeholder acc.

All involve interest I think? However the safest option is to open a savings acc. and pay off the interest you recieve in charity or whatever cos if you do not use your voucher by your child's 1st birthday the goverment will open a stakeholder acc. under your childs name. You should get a booklet giving you more details inshaAllah.

[JayC]

wa alaykum salaam,

mabrook on the birth of your baby, mashAllah.

we didn't bother with both our childrens CTF, because it can only be accessed by the child in 18 yrs time and we intend to make hijra loooong before then insh'Allah, and have no intention of returning to the UK.

[Supernova Nebula]

It's a very good idea:up:

[Hassan Basri]

Make sure no interest is involved. Any type of bonds, goverment bonds etc... with a guaranteed return is forbidden in Islam. Allah and His Prophet :saw: wages war against the people who deal with ribaa.

Open a chequing account that does not give you interest.

And to the brother who said give your interest returns to charity is incorrect. Yes if you have give it, however you shoudn't have in the first place so close or empty your accounts that return interest. Remember when you receive interest you are exploiting somebody, and even if you give it away you are still exploiting somebody. Allah Alim. God knows best.

Here are some quotes from the Quran on this subject:


2:275 THOSE who gorge themselves on usury behave but as he might behave whom Satan has confounded with his touch; for they say, "Buying and selling is but a kind of usury" - the while God has made buying and selling lawful and usury unlawful. Hence, whoever becomes aware of his Sustainer's admonition, and thereupon desists [from usury], may keep his past gains, and it will be for God to judge him; but as for those who return to it -they are destined for the fire, therein to abide!

2:276 God deprives usurious gains of all blessing, whereas He blesses charitable deeds with manifold increase. And God does not love anyone who is stubbornly ingrate and persists in sinful ways.

2:277 Verily, those who have attained to faith and do good works, and are constant in prayer, and dispense charity - they shall have their reward with their Sustainer, and no fear need they have, and neither shall they grieve.

2:278 O you who have attained to faith! Remain conscious of God. and give up all outstanding gains from usury, if you are [truly] believers;

2:279 for if you do it not, then know that you are at war with God and His Apostle. But if you repent, then you shall be entitled to [the return of] your principal : you will do no wrong, and neither will you be wronged.



3:130 O YOU who have attained to faith! Do not gorge yourselves on usury, doubling and re-doubling it - but remain conscious of God, so that you might attain to a happy state;



4:161 and [for] their taking usury although it had been forbidden to them, and their wrongful devouring of other people's possessions. And for those from among them who [continue to] deny the truth We have readied grievous suffering.

[ze leetle elper]

Make sure no interest is involved. Any type of bonds, goverment bonds etc... with a guaranteed return is forbidden in Islam. Allah and His Prophet :saw: wages war against the people who deal with ribaa.

Open a chequing account that does not give you interest.

And to the brother who said give your interest returns to charity is incorrect. Yes if you have give it, however you shoudn't have in the first place so close or empty your accounts that return interest. Remember when you receive interest you are exploiting somebody, and even if you give it away you are still exploiting somebody. Allah Alim. God knows best.



I am a sister inshaAllah. Of course it is not correct to take the interest, but in the case of CTF's there is no opting out option. You either open 1 of the 3 types of account or the Government will open it for you, and they will choose the most haraam-est one there is (lol @ haraam-est). So my point was that the best option is to open a savings account, leave the £250 in there and any interest that is put in, you give it away.

[guest 1111]

Assalamu alaykum
Sister I had this problem as well, but I found this one, check this out, I am gonna apply for it inshaallah

http://www.thechildrensmutual.co.uk/default.aspx?page=476

[Al-ghurabah]

is there any islamic banks or laces we can put money in 18 years seems like long time

[dhakiyya]

I put Ruqayya's in the Children's Mutual Shariah Compliant trust fund. Its staying there until a better Islamic trust fund comes along - one from a completely Muslim financial organisation would be better, although the Children's Mutual is one of the more ethical of non Muslim investment groups, its the only one to offer an ethical child trust fund as well as the only one to offer a Shariah compliant trust fund. (so far, I asked Islamic bank of britain if they did one, they said they might in the future inshaAllah)

[dhakiyya]

All involve interest I think? However the safest option is to open a savings acc. and pay off the interest you recieve in charity or whatever cos if you do not use your voucher by your child's 1st birthday the goverment will open a stakeholder acc. under your childs name. You should get a booklet giving you more details inshaAllah.

No, the children's mutual Shariah compliant one does not involve interest, it is also very strict about what it will and won't invest in, I read all the small print, it is very strict mashaAllah :up:

There are three types of account you can have, two of them involve investment rather than interest, although in all the non Muslim ones involving investment they invest in haram stuff. Only the shariah compliant one doesn't. As zee said the booklet has all the info. I'm surprised you didnt' get the info about the Shariah one zee? :scratch:

[dhakiyya]

I am a sister inshaAllah. Of course it is not correct to take the interest, but in the case of CTF's there is no opting out option. You either open 1 of the 3 types of account or the Government will open it for you, and they will choose the most haraam-est one there is (lol @ haraam-est). So my point was that the best option is to open a savings account, leave the £250 in there and any interest that is put in, you give it away.

savings account is not the least haram option.

The bank still invests the money held in savings accounts, current accounts and any account in the same way they invest stakeholder and shareholder accounts, the difference is that you get paid interest (i.e. a guaranteed return) wheras the other two what you get back is proportional to the return on the investments.

Basically investment works like this, and is halal provided the money is invested only in halal businesses.

You invest in a business (the bank will invest small amounts of the sum in the account in a large number of different businesses, to ensure that if some businesses do not do well, the amount of money in the account does not drop too much) - if the business does well and makes a profit, you get back a percentage of that profit (if what you invested represents 10% of the business capital you get 10% of the profit) - if it makes a loss, the percentage of that loss is equal to the percentage of loss for the company. If the company goes bust, you lose the money you invested. The shareholder and stakeholder accounts put small amounts of the money in a large number of different businesses, so you will not get a total loss if one goes bust. The amount you get back depends on how the companies do as a whole. The value can go up or down year on year, there is no guaranteed return (which would be interest and haram).

The shariah compliant investment accounts do this, but only invest in shariah compliant businesses.

Money in savings accounts is invested in exactly the same way, but the profits from the investment are not shared out proportionally. In a savings account you always get a small profit (interest) regardless of whether the bank makes a loss or a gain with your money. It will always be a small profit of the same fixed value, regardless how much profit the bank makes. The Islamic bank of Britian savings account, by contrast, you get a proportional return each year that could go up or down, same as a shareholder account in a normal bank (also they of course only invest the money in halal businesses).