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  • FIRST POST
    • Shaun84
    • By Shaun84 20th Aug 16, 12:47 AM
    • 2Posts
    • 0Thanks
    Shaun84
    Child Savings - suitable account
    • #1
    • 20th Aug 16, 12:47 AM
    Child Savings - suitable account 20th Aug 16 at 12:47 AM
    Hi

    I'm looking for some advice.

    I'm looking to open an account to save money for my son. I want to pay into it on a monthly basis.

    I want the account to be locked I.e not able to withdraw money unless I give so much notice. Can anyone please point me in the right direction of an account I can open for him?

    Thanks
Page 1
    • xylophone
    • By xylophone 20th Aug 16, 12:35 PM
    • 19,184 Posts
    • 10,895 Thanks
    xylophone
    • #2
    • 20th Aug 16, 12:35 PM
    • #2
    • 20th Aug 16, 12:35 PM
    You are a parent gifting money to your child.

    See

    https://www.gov.uk/savings-for-children

    but this does not apply to money deposited in a JISA - any interest arising is tax free whoever provided the capital.

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

    http://www.moneysavingexpert.com/savings/child-savings-tax-free

    You will see that certain accounts in the above are limited access - funds in a JISA cannot be accessed ( unless in exceptional circumstances) until the child turns 18 and then only by the child.

    Remember that the cash is an absolute gift to your child - once given, it is no longer your money so cannot ( or certainly should not) be regarded as general "family money".
    • luke222010
    • By luke222010 20th Aug 16, 2:35 PM
    • 69 Posts
    • 3 Thanks
    luke222010
    • #3
    • 20th Aug 16, 2:35 PM
    • #3
    • 20th Aug 16, 2:35 PM
    Hi all,

    Sorry to hijack the post but my interests are the same as the OP.
    I have a 3 month old boy and we are looking to also invest in preferably a stocks and shares JISA (I understand there are risks, but over 18 years hopefully it would ride out any bumps in the market).

    I am looking around after being told by a work colleague that Hargreaves Lansdown are the market leaders when it comes to stocks and shares isas. Not sure if this is true for JISA's or even ISA's for that matter, but I'm looking around regardless.

    Can anyone advise on the cheapest platform to invest from?
    We're happy to invest in a medium to high risk JISA, possibly even an actively managed fund, for the right fees.

    We want to invest an initial £500, and £25 a month from there on for 18 years.

    Looking at 0.45% fees with HL, and reinvestment of income (which i'd be looking to do) at 1% per each £10 reinvested.

    OneFamily charge 1.5% management fees - which seems to be common amongst some platforms such as Scottish Friendly for example - with an added 0.25% additional fees although it doesnt state what these are.

    What other platforms are popular, and if possible, can anyone offer advice on a particular fund to invest in?

    Many thanks in advance.
    L.
    • xylophone
    • By xylophone 20th Aug 16, 3:45 PM
    • 19,184 Posts
    • 10,895 Thanks
    xylophone
    • #4
    • 20th Aug 16, 3:45 PM
    • #4
    • 20th Aug 16, 3:45 PM
    http://www.thisismoney.co.uk/money/investing/article-1587994/Junior-Isa-Child-Trust-Fund-How-save-invest-children.html
    is relatively recent and may be worth a browse.

    http://monevator.com/how-to-invest-for-children/ is older but worth a look.

    http://monevator.com/compare-uk-cheapest-online-brokers/

    HL is second to none for efficiency and service levels and an excellent web site but is not the cheapest = there have been favourable mentions on the board of Charles Stanley for JISA.
    • luke222010
    • By luke222010 22nd Aug 16, 8:22 AM
    • 69 Posts
    • 3 Thanks
    luke222010
    • #5
    • 22nd Aug 16, 8:22 AM
    • #5
    • 22nd Aug 16, 8:22 AM
    Thanks for the links.

    I should probably say, ease of online access to statements/see how the fund is doing, is important. In that respect, HL looks the best option so far.
    • ChopperST
    • By ChopperST 22nd Aug 16, 9:25 AM
    • 1,035 Posts
    • 705 Thanks
    ChopperST
    • #6
    • 22nd Aug 16, 9:25 AM
    • #6
    • 22nd Aug 16, 9:25 AM
    HL very expensive to hold funds. CSD would suit your needs better if you exclusively want to invest in funds and not shares at 0.25%

    https://www.charles-stanley-direct.co.uk/Our_Services/JISA/
    • zolablue25
    • By zolablue25 22nd Aug 16, 9:39 AM
    • 1,482 Posts
    • 439 Thanks
    zolablue25
    • #7
    • 22nd Aug 16, 9:39 AM
    • #7
    • 22nd Aug 16, 9:39 AM
    Bare in mind that with Charles Stanley the minimum monthly payment is £50. FOr one-off payments its £100 and for inital fund purchase, its £500. HL's levels are lower (I use CSD myself but find the lower limits a bit of a PITA for daughter's JISA).

    Luke, if you are looking at reinvesting dividends, why not just buy accumulator funds, that way its reinvested automatically and without charge.
    • ChopperST
    • By ChopperST 22nd Aug 16, 10:11 AM
    • 1,035 Posts
    • 705 Thanks
    ChopperST
    • #8
    • 22nd Aug 16, 10:11 AM
    • #8
    • 22nd Aug 16, 10:11 AM
    I think the OP is looking at £25pm contributions. They could just set up a £50 monthly payment plan then cancel it before the next months payment is due making 6 x £50 payments rather than 12 x £25.

    We also have a 123 mini account for our son to hold some cash for him when he gets cash at Birthdays and Christmas then transfer it over to his ISA.
    • zolablue25
    • By zolablue25 22nd Aug 16, 10:22 AM
    • 1,482 Posts
    • 439 Thanks
    zolablue25
    • #9
    • 22nd Aug 16, 10:22 AM
    • #9
    • 22nd Aug 16, 10:22 AM
    I think the OP is looking at £25pm contributions. They could just set up a £50 monthly payment plan then cancel it before the next months payment is due making 6 x £50 payments rather than 12 x £25.

    We also have a 123 mini account for our son to hold some cash for him when he gets cash at Birthdays and Christmas then transfer it over to his ISA.
    Originally posted by ChopperST
    Indeed they could. Depends whether they want a "fire and forget" set up or whether they are prepared to deal with the account each time they want to make a payment.
    • luke222010
    • By luke222010 22nd Aug 16, 11:25 AM
    • 69 Posts
    • 3 Thanks
    luke222010
    HL very expensive to hold funds. CSD would suit your needs better if you exclusively want to invest in funds and not shares at 0.25%

    https://www.charles-stanley-direct.co.uk/Our_Services/JISA/
    Originally posted by ChopperST
    Bare in mind that with Charles Stanley the minimum monthly payment is £50. FOr one-off payments its £100 and for inital fund purchase, its £500. HL's levels are lower (I use CSD myself but find the lower limits a bit of a PITA for daughter's JISA).

    Luke, if you are looking at reinvesting dividends, why not just buy accumulator funds, that way its reinvested automatically and without charge.
    Originally posted by zolablue25
    Thanks for the replies.

    That's exactly what I'm looking at doing, investing in a accumulator fund.

    Can I deal with CSD online? I.e. Can I log in and view statements, and see how the fund is doing on a month to month basis? I had a quick look at their website and I can't see anything on there suggesting I can.
    • luke222010
    • By luke222010 22nd Aug 16, 11:26 AM
    • 69 Posts
    • 3 Thanks
    luke222010
    HL very expensive to hold funds. CSD would suit your needs better if you exclusively want to invest in funds and not shares at 0.25%

    https://www.charles-stanley-direct.co.uk/Our_Services/JISA/
    Originally posted by ChopperST
    How much are we talking when you say very expensive? Are you able to give a comparative example against someone like CSD?

    Cheers,
    L.
    • bigadaj
    • By bigadaj 22nd Aug 16, 12:47 PM
    • 7,828 Posts
    • 4,774 Thanks
    bigadaj
    How much are we talking when you say very expensive? Are you able to give a comparative example against someone like CSD?

    Cheers,
    L.
    Originally posted by luke222010
    Hl are 0.45% on funds for comparison.
    • planteria
    • By planteria 22nd Aug 16, 1:43 PM
    • 4,753 Posts
    • 1,038 Thanks
    planteria
    we use friendly society savings plans, for which £25/m is perfect.
    new baby on the way, and will set up a new plan for him as soon as he arrives
    • xylophone
    • By xylophone 22nd Aug 16, 2:07 PM
    • 19,184 Posts
    • 10,895 Thanks
    xylophone
    Re TESP - old but worth a browse?

    http://www.whatinvestment.co.uk/investment-decisions/low-cost-investing/824862/friendly-societies-an-introduction.thtml

    https://www.theguardian.com/money/2009/may/02/scottish-friendly-tax-free-investment
    • luke222010
    • By luke222010 24th Aug 16, 9:18 AM
    • 69 Posts
    • 3 Thanks
    luke222010
    we use friendly society savings plans, for which £25/m is perfect.
    new baby on the way, and will set up a new plan for him as soon as he arrives
    Originally posted by planteria
    Hi there,

    Do you mind me asking which fund have you invested in, and whether it has grown or been as risky as expected?
    • luke222010
    • By luke222010 24th Aug 16, 9:34 AM
    • 69 Posts
    • 3 Thanks
    luke222010
    Can anyone explain whether a fund would be subject to transaction charges, i.e. would there be a charge for each £25 invested?

    Moneywise comparison of HL & CSD platforms state the following transaction charges but they mean little to me...

    HL:
    There are no transaction charges for Unit Trusts or OEICs. Online share dealing is £5.95 per deal. Deals by telephone or post are charged at 1% subject to a minimum charge of £20 and a maximum of £50. Equity regular savings - £1.50 per stock per month Available on FTSE 350 shares and selected investment trusts subject to a minimum of £25 per stock per month.

    CSD:
    Dealing commission:- 1.85% on first £10,000 0.50% on next £90,000 0.25% on the balance Minimum commissions of £25 on UK traded and £75 on overseas trades apply.
    • luke222010
    • By luke222010 12th Oct 16, 9:46 AM
    • 69 Posts
    • 3 Thanks
    luke222010
    Anyone use TDDirect?
    Does anyone have any advice with regards to TDDirect ?
    I am looking at this broker as the one to use to set my childs JISA up - they look the cheapest to invest in a VLS60% fund.

    Any info would be appreciated.

    Cheers,
    L.
    • bowlhead99
    • By bowlhead99 12th Oct 16, 10:12 AM
    • 5,129 Posts
    • 9,051 Thanks
    bowlhead99
    I use TD for my ISA, a dealing account, and second dealing account designated for nephew. Service is fine.

    My pension is with AJ Bell Youinvest who have a lower percentage charge on funds, but they have a transaction fee on every purchase which would be too costly for you at £25pm (whereas TD and HL and CS don't)

    Basically if you use TD to hold a fund like LifeStrategy it costs 0.3% for the platform fee, where HL is 0.45%. So, TD wins in that area. However, on only £1000 invested you are talking £3.00 vs £4.50 a year. It obviously mounts up to bigger numbers when you have more invested and for multi-year periods, as you can see HL is 50% more for doing the same thing.

    Presumably you don't need bells and whistles and great customer service as you are only buying one fund and holding it. And you don't need pretty charts and advertorial and junk mail telling you what to invest in, as you already decided what to invest in. Still, some people like the "nice for newbies" customer service at HL when it's only costing them a few pounds a year.

    My dad uses HL though hopefully he will agree to move later this year when he puts his next slug of ISA money in, as he has a lot more than £1k invested to get him through retirement.
    • luke222010
    • By luke222010 12th Oct 16, 11:12 AM
    • 69 Posts
    • 3 Thanks
    luke222010
    I use TD for my ISA, a dealing account, and second dealing account designated for nephew. Service is fine.

    My pension is with AJ Bell Youinvest who have a lower percentage charge on funds, but they have a transaction fee on every purchase which would be too costly for you at £25pm (whereas TD and HL and CS don't)

    Basically if you use TD to hold a fund like LifeStrategy it costs 0.3% for the platform fee, where HL is 0.45%. So, TD wins in that area. However, on only £1000 invested you are talking £3.00 vs £4.50 a year. It obviously mounts up to bigger numbers when you have more invested and for multi-year periods, as you can see HL is 50% more for doing the same thing.

    Presumably you don't need bells and whistles and great customer service as you are only buying one fund and holding it. And you don't need pretty charts and advertorial and junk mail telling you what to invest in, as you already decided what to invest in. Still, some people like the "nice for newbies" customer service at HL when it's only costing them a few pounds a year.

    My dad uses HL though hopefully he will agree to move later this year when he puts his next slug of ISA money in, as he has a lot more than £1k invested to get him through retirement.
    Originally posted by bowlhead99
    Thanks for the reply. This is exactly what I was looking for!
    • jimjames
    • By jimjames 12th Oct 16, 1:53 PM
    • 10,841 Posts
    • 8,913 Thanks
    jimjames
    we use friendly society savings plans, for which £25/m is perfect.
    new baby on the way, and will set up a new plan for him as soon as he arrives
    Originally posted by planteria
    As usual you promote friendly society plans which are inflexible with high charges. Other options mentioned already are far better value.
    Remember the saying: if it looks too good to be true it almost certainly is.
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