New Baby

Zoe_smith · 18 April 2017 at 4:34PM

Hi

I have just given birth and i would like to open a savings account for my baby. i want to save money on a regular basis and put in a lump sum. I don't want to open an account that will risk the money.

Any advice would be appreciated as there is so much out there its so overwhelming.

Thanks

Fatbritabroad · 18 April 2017 at 4:37PM

Congrats! High interest savings account and personally I would keep it in your name in case they end up not being good with money
out of interest whats your concern with opening something like a stocks and shares isa for the child when they won't need it for 18 years at least?

edinburgher · 18 April 2017 at 4:40PM

The MSE page on savings accounts for children can be found here: http://www.moneysavingexpert.com/savings/child-savings-tax-free

Rates aren't particularly good and while I appreciate you not wanting to 'risk' the money, please consider that there are different types of risk. So, while investing in the stock market might seem 'risky', consider shortfall risk as a result of your interest rate struggling to keep up with inflation.

It will likely be worth your time looking at investing for your child as well, although it will require a bit more research.

I appreciate how you feel re. not wanting to risk children's savings, we have a toddler in the house, it quickly became apparent that investing was the way to go after her 4% JISA rate was cut.

xylophone · 18 April 2017 at 5:48PM

At the moment, the Coventry pays 3.25% on a JISA which is ahead of CPI and RPI inflation at the moment but only just.

The JISA does permit you to split the allowance between cash and stocks and shares if you wish.

https://www.gov.uk/junior-individual-savings-accounts/overview

https://www.coventrybuildingsociety.co.uk/consumer/product/savings/children/junior-cash-isa.html

https://www.charles-stanley-direct.co.uk/Our_Services/JISA/?utm_source=adwords&utm_medium=cpc&utm_campaign=CSD_Brand&gclid=CJ-wocq6rtMCFQs8Gwod95MN_Q&gclsrc=aw.ds

http://www.telegraph.co.uk/finance/investor/investing-news/11942946/Parents-making-wrong-choices-when-saving-for-kids.html

mark1959 · 18 April 2017 at 7:37PM

Well you've come to the right place for that advice but never mind that, what's your baby's name? :beer:

jimjames · 18 April 2017 at 8:20PM

Zoe_smith wrote: »

Hi

I have just given birth and i would like to open a savings account for my baby. i want to save money on a regular basis and put in a lump sum. I don't want to open an account that will risk the money.

You might want to reconsider your options and learn more about risks. It gives the impression that you don't fully understand risk if you're looking for money to use in 18 years time as inflation will be as much of a risk as investment fluctuations.

New Baby

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