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  • FIRST POST
    • Zoe smith
    • By Zoe smith 18th Apr 17, 4:34 PM
    • 43Posts
    • 36Thanks
    Zoe smith
    New Baby
    • #1
    • 18th Apr 17, 4:34 PM
    New Baby 18th Apr 17 at 4:34 PM
    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
Page 1
    • Fatbritabroad
    • By Fatbritabroad 18th Apr 17, 4:37 PM
    • 147 Posts
    • 66 Thanks
    Fatbritabroad
    • #2
    • 18th Apr 17, 4:37 PM
    • #2
    • 18th Apr 17, 4:37 PM
    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
    • By edinburgher 18th Apr 17, 4:40 PM
    • 10,585 Posts
    • 54,892 Thanks
    edinburgher
    • #3
    • 18th Apr 17, 4:40 PM
    • #3
    • 18th Apr 17, 4:40 PM
    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
    • By xylophone 18th Apr 17, 5:48 PM
    • 21,306 Posts
    • 12,237 Thanks
    xylophone
    • #4
    • 18th Apr 17, 5:48 PM
    • #4
    • 18th Apr 17, 5:48 PM
    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=CS D_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
    • By mark1959 18th Apr 17, 7:37 PM
    • 194 Posts
    • 213 Thanks
    mark1959
    • #5
    • 18th Apr 17, 7:37 PM
    • #5
    • 18th Apr 17, 7:37 PM
    Well you've come to the right place for that advice but never mind that, what's your baby's name?
    • jimjames
    • By jimjames 18th Apr 17, 8:20 PM
    • 11,783 Posts
    • 10,144 Thanks
    jimjames
    • #6
    • 18th Apr 17, 8:20 PM
    • #6
    • 18th Apr 17, 8:20 PM
    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.
    Originally posted by Zoe smith
    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.
    Remember the saying: if it looks too good to be true it almost certainly is.
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