Start saving for my daughter - what account? Or shares?
Start saving for my daughter - what account? Or shares?
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CoolHands

Original Poster:

23,621 posts

225 months

Tuesday 4th February 2014
quotequote all
5 year old daughter. I want to start saving 50 or 100 a month for the next 15 years! No specific reason ie not ringfenced for uni or whatever. I don't want to swap accounts every 5 mins for the next best rate so I'd rather something half decent over the life of the saving acc.

recommendations? Ie should I be buying some kind of shares tracker or what? Can I set something like that up in her name? Thinking of tax. Otherwise what, one of those odd child specific accounts banks do? Are they any good?

I've no idea so pointers pls smile

CoolHands

Original Poster:

23,621 posts

225 months

Tuesday 4th February 2014
quotequote all

plover

364 posts

241 months

Tuesday 4th February 2014
quotequote all
CoolHands said:
5 year old daughter. I want to start saving 50 or 100 a month for the next 15 years! No specific reason ie not ringfenced for uni or whatever. I don't want to swap accounts every 5 mins for the next best rate so I'd rather something half decent over the life of the saving acc.

recommendations? Ie should I be buying some kind of shares tracker or what? Can I set something like that up in her name? Thinking of tax. Otherwise what, one of those odd child specific accounts banks do? Are they any good?

I've no idea so pointers pls smile
Did this for two nieces, and used F&C childrens fund to do it (this was before Junior ISAs); but I'd still recommend there Child trust fund as doesn't have same restrictions as Junior ISA. (they have few brochures you can order on this)
Also, did 100 a month for 15 years which is 18K itself. And using these funds the money more than doubled even given the stockmarket issues last few years. And because I use this fund was able to decide to give half at 18 and will give rest when 21.

Chose F&C as have been around for 140 years and nice stable fund, won't get stellar performance, but won't lose everything either. Also, paying monthly it's easy to do and they send 6 monthly statements (can also do it online now as well).