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    • stressedbrian
    • By stressedbrian 25th Aug 16, 2:15 PM
    • 25Posts
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    stressedbrian
    Any recommendations on best account / isa to setup for child
    • #1
    • 25th Aug 16, 2:15 PM
    Any recommendations on best account / isa to setup for child 25th Aug 16 at 2:15 PM
    Hello folks,

    we have not long had a baby and I would like to set-up an account(s) for her initially a savings account and an isa as well.

    Are there any good deals or offers just now or any recommendations?

    We are in Scotland if that swings things any way.

    Any help greatly appreciated.
Page 1
    • edinburgher
    • By edinburgher 25th Aug 16, 2:41 PM
    • 10,090 Posts
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    edinburgher
    • #2
    • 25th Aug 16, 2:41 PM
    • #2
    • 25th Aug 16, 2:41 PM
    Hi Brian.

    Not so much a recommendation (because interest rates don't seem to be great at the moment), but if this is for long term savings/school fees/a nest egg, I'd recommend the best rate cash account you can get (if you think you really need to save cash) and either a JISA or a S&S ISA of your own to invest for your daughter's future. I don't recommend saving cash over 18 years, it will be nibbled away at by inflation.

    This is the route that we took. Family gifts are stashed at 4% in a cash JISA and we invest through our own ISAs in a well diversified index fund (one of the Vanguard Life Strategy products). Hopefully we'll have enough that she can buy her own place one day and let me have a lie in

    Nationwide are offering 3.25% on cash.
    • stressedbrian
    • By stressedbrian 25th Aug 16, 2:49 PM
    • 25 Posts
    • 3 Thanks
    stressedbrian
    • #3
    • 25th Aug 16, 2:49 PM
    • #3
    • 25th Aug 16, 2:49 PM
    Thanks very much, truthfully I hadn't considered the effect of inflation on cash savings (not getting much sleep - new baby and all - just now so brain isn't quite in gear).
    Would you keep clear of the stock and shares type isa over cash?

    Also I don't recognise any of the JISA providers is there any that are better or more established?
    • xylophone
    • By xylophone 25th Aug 16, 5:07 PM
    • 19,176 Posts
    • 10,893 Thanks
    xylophone
    • #4
    • 25th Aug 16, 5:07 PM
    • #4
    • 25th Aug 16, 5:07 PM
    https://www.gov.uk/junior-individual-savings-accounts/overview

    Remember that the child has the right to control at age 16 and access at age 18.

    Re cash JISA

    http://www.moneysavingexpert.com/savings/junior-isa

    Stocks and shares? Hl offers excellent service, information and website but is not the cheapest platform.

    Charles Stanley often gets a favourable mention.
    • jimjames
    • By jimjames 25th Aug 16, 5:09 PM
    • 10,841 Posts
    • 8,911 Thanks
    jimjames
    • #5
    • 25th Aug 16, 5:09 PM
    • #5
    • 25th Aug 16, 5:09 PM
    Would you keep clear of the stock and shares type isa over cash?
    Originally posted by stressedbrian
    No, the opposite. I'd avoid cash and go for stocks and shares option instead.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • xylophone
    • By xylophone 25th Aug 16, 6:44 PM
    • 19,176 Posts
    • 10,893 Thanks
    xylophone
    • #6
    • 25th Aug 16, 6:44 PM
    • #6
    • 25th Aug 16, 6:44 PM
    Recent thread http://forums.moneysavingexpert.com/showthread.php?p=71176540#post71176540
    • Alice Holt
    • By Alice Holt 25th Aug 16, 7:55 PM
    • 567 Posts
    • 512 Thanks
    Alice Holt
    • #7
    • 25th Aug 16, 7:55 PM
    • #7
    • 25th Aug 16, 7:55 PM
    When my neices where born, I set up a Investment trust child savings plan (in a bare trust) for them, and made monthly subscriptions for 13 years.

    One of my picks was Scottish Mortgage:
    https://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=ITSMT&univ=T

    When they passed the age of 13, I made payments into Building Society children accounts for them. The intention being that they would have a cash sum readily assessible at 18 for uni etc. (Plus a period shorter than 5 years becomes more risky for S&S investments).

    Now aged 17 & 22, they have over £30k each to their name.
    Rather more than I expected (due to the spectacular performance of SMIT), I can only hope the 17 year old is as sensible as the 22 year was with this money.

    Nowadays, a JISA is likely to be the better wrapper.
    • edinburgher
    • By edinburgher 25th Aug 16, 9:02 PM
    • 10,090 Posts
    • 52,646 Thanks
    edinburgher
    • #8
    • 25th Aug 16, 9:02 PM
    • #8
    • 25th Aug 16, 9:02 PM
    No, the opposite. I'd avoid cash and go for stocks and shares option instead.
    Originally posted by jimjames
    Agreed - over time DD will have mostly S&S.

    Thanks very much, truthfully I hadn't considered the effect of inflation on cash savings (not getting much sleep - new baby and all - just now so brain isn't quite in gear).
    Best of British - DD is 15 months and I still feel like that!
    • luke222010
    • By luke222010 11th Oct 16, 12:12 PM
    • 69 Posts
    • 3 Thanks
    luke222010
    • #9
    • 11th Oct 16, 12:12 PM
    • #9
    • 11th Oct 16, 12:12 PM
    Hi stressedbrian!

    Just gotten round to looking at this again, after (like you I would expect) a rather sleepless couple of months!
    I haven't yet made a decision on what to invest in, but have been putting money away each month ready to invest an initial lump sum, and then equal amounts each month from thereon.

    Just wondering if you have invested yet, and if so, what platform and fund did you go for?

    Cheers,
    L.
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