Child's easy access account

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Entsman
Entsman Posts: 26 Forumite
in Savings & investments
Ok so after doing my research I am about to deposit a inheritance cheque for 75k x 2 for each of my children age 3 & 5 into a rubbish interest hsbc future saver account as just a dumping ground until I start to distribute their money into a jisa a S&S Isa possibly a SIPP and then open a nationwide and Halifax account to their max to get a decent rate for a year..I struggled to find an easy access account, nationwide yes ( max 50k) Halifax yes min 20k I have a single cheque in their name, anyway to cut to the chase is there another temp dumping bank I should consider?...And apart from buying them a property ( I am a landlord so am aware of the pitfalls associated with this) anything else I should look at?

Thanks

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  • Alexland
    Alexland Posts: 9,653 Forumite
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    SIPPs are a bit complicated and offer potentially too much choice to a young inexperienced investor who might be tempted to make school boy errors with your 2880 per year. Have you considered an Aviva stakeholder which you can get via Cavendish?

    Also unless depending on your circumstances it might be worth keeping some of it in your name for control and other benefits. For example we are saving to help with house deposits in our LISAs to get the government bonuses. My son will be 24 when I can withdraw at 60.
  • Entsman
    Entsman Posts: 26 Forumite
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    At the age of 56 myself I can see the benefits of putting max into a SIPP for the next 5 yrs and just leaving it in there until the boys can access it BUT it is their money and when they are 18 they may have a different view..the same goes for us investing the money in our names, although we would be down by it in their best interest it is THEIR money...
  • Alexland
    Alexland Posts: 9,653 Forumite
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    Ok so this isn't you disinheriting yourself early but from another source? In which case I guess you should have a think about what the source would want you to do with the money. Was it for a particular purpose such as education or are you free to buld pots that would last across their lifetime? It can be a bad thing having too much money too early so a stakeholder pension might be a very good way of stashing between 30 and 50pc of it but it will take about 10 years to get it in there.
  • Keep_pedalling
    Keep_pedalling Posts: 16,628 Forumite
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    The children should have the ability to access their inheritance from the age of 18, if you put that out of reach by placing it in a pension then they could actually sue you to compensate them. Uni fees and getting on the property ladder are more likely to be the priorities for young adults than a pension.

    By all means put your own money away for them in a pension, but not from another source.
  • Entsman
    Entsman Posts: 26 Forumite
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    It is from a grandparent for the boys to do with as they please at 18...So until then we will be trustees and try to increase the pot as best we can in the next 13 yrs.. As property owners and seeing a high return from our investments into this we can see it possibly being the best route especially with the yield from rental income...But for now need to dump the lot somewhere with the best interest rate we can find.. Still looking ��
  • bigadaj
    bigadaj Posts: 11,531 Forumite
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    Entsman wrote: »
    At the age of 56 myself I can see the benefits of putting max into a SIPP for the next 5 yrs and just leaving it in there until the boys can access it BUT it is their money and when they are 18 they may have a different view..the same goes for us investing the money in our names, although we would be down by it in their best interest it is THEIR money...

    They obviously wouldn't be able to access a sipp until they are probably 60, so a very rigid option.
  • Entsman
    Entsman Posts: 26 Forumite
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    Yes I agree, although it may well be a great investment really long term theres a lot of time between the age of 18 & 55...It's a great dilemma to be in for your children's future but not straight forward deciding how to invest 150k for their future.. Still looking for somewhere to bank it short term but all a much of a muchness it seems
  • Alexland
    Alexland Posts: 9,653 Forumite
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    Shouldn't need to change the cheques as it could just go through their current account first. We opened a Santander 123 mini on the day we registered his birth which we use for his basic toddler banking. Although one saving provider won't accept transfers from this and make us cycle the money through our account first.
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