Where to save for children’s uni fees
MummyD
Posts: 142 Forumite
Hi - first time poster on this board and am looking for some help. DH and I have finally got our head around the fact that our little children are not so little any more and we really ought to start thinking about putting some money away to cover university expenses.
We currently have commitments but in a few months’ time we’ll be in a position to put £250 a month towards this expense. We won’t need to touch it for six years (oldest has just started senior School). My question is - what savings/investment vehicle is best for this kind of regular saving that we’ll need to access after 6 years? We currently only have cash savings accounts so no other savings/investments. We’re real newbies!
Thanks in advance for any advice.
We currently have commitments but in a few months’ time we’ll be in a position to put £250 a month towards this expense. We won’t need to touch it for six years (oldest has just started senior School). My question is - what savings/investment vehicle is best for this kind of regular saving that we’ll need to access after 6 years? We currently only have cash savings accounts so no other savings/investments. We’re real newbies!
Thanks in advance for any advice.
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Comments
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One of you could open a Nationwide Flexdirect current account which will give access to the 5% rate on £2500 for a year and also access to the Flexclusive regular saver.
At the end of the year the other person could open a Flexdirect current account to hold most of what was saved in the first person's Flexdirect current account and another Flexclusive regular saver could be opened.
Consider options again after the two years.
Cycling in/out the required monthly payment is easily managed with FP.0 -
Following with interest as I have spent the evening trying to find the best solution for exactly this.
Only difference being that ours are toddlers still and we are saving £200 a month per child.
My biggest concern is the £100 of interest per parent limit as all the cash is from us.
Don't really want a JISA as we want to be able to a) spend it earlier if we feel it's appropriate and b) only spend it how we wish not how they see fit at 18.0 -
? Santander mini account (in trust) I have set up. 3% interest on up to £2000.
S&S ISA?0 -
Conventional wisdom for a 6 year investment is some kind of exposure to stocks and shares otherwise inflation will eat away at your savings.0
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You could look at the Nationwide accounts for children. The junior isa pays 3% and you can pay in up to £4128 each tax year. The money however is not accessible until the child turns 18.The flex one regular saver for children pays 3.5% and you can pay in up to £100 per month. It does require that you have the flex one current account for children, which pays 1% on up to £1000. These three accounts can be operated online very easily. So, you could pay eg £150 into the flex one current account each month, and then transfer £100 to the regular saver and the rest to the junior isa. The current account comes with a debit card. There is also a Santander mini 123 account which pays 3% on balances from £300 to £2000. This is a current account which also has a debit card and can be operated online. I have been using all of these accounts for my teenage children for the last few years. Hope this helps.0
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I may have misunderstood the OP but I thought s/he wanted to cover their parental obligations, not the child's own contribution.
As such any savings/JISA in the child's name wouldn't count towards the required parental top up.
For our youngest 2, we plan on using part of our TFLS from our SIPPs, which may be something to consider, OP, if you will be old enough, and don't require your lump sum for anything else.
For our older 2 we are investing in vls60 in an isa in my name.
They are due a small inheritance which will go into a JISA and form part of their contribution to uni, if they wish it to.Save 12 k in 2018 challenge member #79
Target 2018: 24k Jan 2018- £560 April £26700 -
I found getting divorced and leaving the offspring with a low earning other half a remarkably good way of getting higher levels of student loan.
That might be a little extreme to others though.0 -
6years is OK for a lump sum investment, but rather short for regular saving (some of which would be invested for only 1, 2 or 3 years).Conventional wisdom for a 6 year investment is some kind of exposure to stocks and shares otherwise inflation will eat away at your savings.Eco Miser
Saving money for well over half a century0 -
I saved into investment trust savings plans to send my 3 to university.
I used both Witan and F&C. You can isa or Jisa them, or leave them unwrapped.0 -
With the current low interest rates, it will be a while before you need to worry about the £100 interest limit. Plus, you'll only pay tax if you are also over your own personal savings allowance https://www.gov.uk/savings-for-childrenFollowing with interest as I have spent the evening trying to find the best solution for exactly this.
Only difference being that ours are toddlers still and we are saving £200 a month per child.
My biggest concern is the £100 of interest per parent limit as all the cash is from us.
Don't really want a JISA as we want to be able to a) spend it earlier if we feel it's appropriate and b) only spend it how we wish not how they see fit at 18.
Use regular savers or current accounts initially while the pot builds up. Either the Nationwide accounts mentioned by xylophone, or Halifax have some kids accounts at good rates. 4% regular saver (up to £100 / month) and 2% instant access (up to £20,000 although you hit the £100 total interest limit when you've got £3.1k in there and are making £100 / month saving).I've got a plan so cunning you could put a tail on it and call it a weasel.0
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