Children's savings accounts

[rfisher]

Currently have some money in children's savings accounts earning a massive 1% interest.

I'd like to improve on this so I'm thinking either a bond at fixed interest or ISAs.

What are the rules for such investments?

Can children have ISAs or bonds?

Can parents open ISAs for their kids but still have an ISA in their own name?

Ta.

[onedsla]

Hi - with our first now 6 days overdue, I've spent some of the time looking at this.

There's a minimum age of 16 for a cash ISA. Some places set their own minimum of 18. Unless your child is earning £6k+ and in danger of becoming a tax payer, there's no real advantage of opening an ISA as there are better rates available in the 'best buy' savings accounts.

You can currently get up to 6% with a regular savings account, although there's some hassle attached to get the best rates (eg moving money each year) - take a look here: http://www.moneysavingexpert.com/savings/child-sav...

[rfisher]

Thanks - and congrats on imminent parenthood.

It's a rollercoaster ride for sure.

Hope all goes well for you both.

[jdwoodbury]

I believe in the Autumn of 2011 a new ISA will come out aimed at children to account for the lack of CTF

http://www.telegraph.co.uk/finance/personalfinance...

Regarding savings accounts Halifax is one of the best (assuming you invest less than £1200 per year) at 6%

http://www.halifax.co.uk/savings/accounts/children...

[Rocksteadyeddie]

I wish to invest some money in the Indian market for both the kids. Happy with the risk profile, and ideally would like the tax benefits that come with a child trust fund. Any ideas anyone?

[jdwoodbury]

I believe F&C have up to 12 investment plans you can select, none of them are specific to the Indian market though, but the they do have a Global Growth Small Companies fund that may be worth a look.

Outside of a managed fund I believe SelfTrade have a self select shares option but I am not sure what restrictions are within this for using the CTF voucher.