Saving for children
Discussion
Sorry if this has been done to death, I've gone back 13 pages in this sub forum and can't see anything obvious.
I'd like to save a small nominal about of about £50/mth for my 7 week old daughter. I don't want her to have sole control of the funds herself at 18/21. I would also like to make larger top ups when people give her money for birtdays etc.
Any recomendations on what should I be looking at - friendly societies, child isa, premium bonds, standard adult saving account? I bank with Nationwide.
Thanks,
Matt
I'd like to save a small nominal about of about £50/mth for my 7 week old daughter. I don't want her to have sole control of the funds herself at 18/21. I would also like to make larger top ups when people give her money for birtdays etc.
Any recomendations on what should I be looking at - friendly societies, child isa, premium bonds, standard adult saving account? I bank with Nationwide.
Thanks,
Matt
Thanks guys, Russ interesting you say shares - I've just opened a Hargreaves and Lansdown vantage ISA. Perhaps thinking about it Ellie's £50 can go in there instead.
Side point - Stocks and Shares are new to me, would prefer to invest in some kind of balanced fund via the H&L account and maybe buy stocks as and when.
Side point - Stocks and Shares are new to me, would prefer to invest in some kind of balanced fund via the H&L account and maybe buy stocks as and when.
We have a child trust fund that purchases shares. Unfortunately, the fund does go to our son when he is 18 but I'm hoping to be able to guide him somewhat so he doesn't blow the lot on cars and parties.
If he does he will be funding his own university place and will have learned one of life's lessons.
If he does he will be funding his own university place and will have learned one of life's lessons.
ghamer said:
BoRED S2upid said:
Halifax offer 6% for children. Shame they don't offer it for everyone!
We got excited about this too until we went in to be told its not actually 6% because it's compounded to about 3%.Whatever that means.Thanks for wasting my time was my reply.b
ds.Its either 6% or not, surely? (I Understand that it will only get 6% on the initial funds which have been in for the full year....)
It was the best rate I could find, nothing came close, and hopefully she will sensible enough to not blow it all when she is 18........
Trax said:
ghamer said:
BoRED S2upid said:
Halifax offer 6% for children. Shame they don't offer it for everyone!
We got excited about this too until we went in to be told its not actually 6% because it's compounded to about 3%.Whatever that means.Thanks for wasting my time was my reply.bds.Its either 6% or not, surely? (I Understand that it will only get 6% on the initial funds which have been in for the full year....)
It was the best rate I could find, nothing came close, and hopefully she will sensible enough to not blow it all when she is 18........
I seem to recall you are not allowed to make withdrawals until the child is 18. So Halifax could change the interest rate to 0.1% and there's nothing you can do to swap to a better rate.
oyster said:
Isn't the money stuck in the account though?
I seem to recall you are not allowed to make withdrawals until the child is 18. So Halifax could change the interest rate to 0.1% and there's nothing you can do to swap to a better rate.
This is the vehicle I currently use. You can transfer your funds to another kids ISA if they do this with the rate.I seem to recall you are not allowed to make withdrawals until the child is 18. So Halifax could change the interest rate to 0.1% and there's nothing you can do to swap to a better rate.
oyster said:
Trax said:
ghamer said:
BoRED S2upid said:
Halifax offer 6% for children. Shame they don't offer it for everyone!
We got excited about this too until we went in to be told its not actually 6% because it's compounded to about 3%.Whatever that means.Thanks for wasting my time was my reply.bds.Its either 6% or not, surely? (I Understand that it will only get 6% on the initial funds which have been in for the full year....)
It was the best rate I could find, nothing came close, and hopefully she will sensible enough to not blow it all when she is 18........
I seem to recall you are not allowed to make withdrawals until the child is 18. So Halifax could change the interest rate to 0.1% and there's nothing you can do to swap to a better rate.
Sorry posting from phone on hols.
6% it's correct but it's on a cumulative amount. if it's the one I signed my kids up to you can pay in 100 to open it and up to 100 each month. so you get 6% on first 100, 11/12 of 6% on the next one plus the initial payment, 10/12 on the next one eplus the last two paymentsetc...
it works out just over 3% on the total.
it is still better than most. the only slightly better ones were the isa over a longer period.
the 6% allows you to build up an amount for an isa.
Hth.
G
6% it's correct but it's on a cumulative amount. if it's the one I signed my kids up to you can pay in 100 to open it and up to 100 each month. so you get 6% on first 100, 11/12 of 6% on the next one plus the initial payment, 10/12 on the next one eplus the last two paymentsetc...
it works out just over 3% on the total.
it is still better than most. the only slightly better ones were the isa over a longer period.
the 6% allows you to build up an amount for an isa.
Hth.
G
gmasterfunk said:
Sorry posting from phone on hols.
6% it's correct but it's on a cumulative amount. if it's the one I signed my kids up to you can pay in 100 to open it and up to 100 each month. so you get 6% on first 100, 11/12 of 6% on the next one plus the initial payment, 10/12 on the next one eplus the last two paymentsetc...
it works out just over 3% on the total.
it is still better than most. the only slightly better ones were the isa over a longer period.
the 6% allows you to build up an amount for an isa.
Hth.
G
That makes sense, although the one I opened has no monthly limit, so you can put as much (within ISA limits) in as you want, so I can max up to april, then max again. There was no mention of when the 6% expires, so its not fixed to 12 months, although I guess they can change it with notice, which is when I will look at other deals and maybe transfer.6% it's correct but it's on a cumulative amount. if it's the one I signed my kids up to you can pay in 100 to open it and up to 100 each month. so you get 6% on first 100, 11/12 of 6% on the next one plus the initial payment, 10/12 on the next one eplus the last two paymentsetc...
it works out just over 3% on the total.
it is still better than most. the only slightly better ones were the isa over a longer period.
the 6% allows you to build up an amount for an isa.
Hth.
G
Trax said:
That makes sense, although the one I opened has no monthly limit, so you can put as much (within ISA limits) in as you want, so I can max up to april, then max again. There was no mention of when the 6% expires, so its not fixed to 12 months, although I guess they can change it with notice, which is when I will look at other deals and maybe transfer.
I think there are two different products here. There'a a regular saver thing which is 3%/6%, but there's also a Junior ISA which gets 6% on anything you put in up to ISA limits. The hook is that you need an adult ISA to open this. yes I'm talking about the regular saver.
didn't know about the 6% isa, don't think it was available at the start of the year? Think the best I could get was just less than the 6/3% so I slid over enough, but to leave me with enough to top up the kids to 100 /month. iyswim?
anyway yes for a lump sum isa probably better at that rate , but to accumulate the regular saver then slide it over to an isa? need a spreadsheet!
word of warning, iana accountant!
didn't know about the 6% isa, don't think it was available at the start of the year? Think the best I could get was just less than the 6/3% so I slid over enough, but to leave me with enough to top up the kids to 100 /month. iyswim?
anyway yes for a lump sum isa probably better at that rate , but to accumulate the regular saver then slide it over to an isa? need a spreadsheet!
word of warning, iana accountant!
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