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    • tbkbt
    • By tbkbt 17th May 17, 1:25 PM
    • 34Posts
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    tbkbt
    savings for newborns
    • #1
    • 17th May 17, 1:25 PM
    savings for newborns 17th May 17 at 1:25 PM
    Hi, we've just had our first and id like to start putting some money away, maybe £10/week, would i best to open an account(saffron BS?) for him so he can continue when he's older, or open another saving account under my name and put the money in there, then sort out wen he's older if he wants his own account?
    thanks
Page 1
    • atush
    • By atush 17th May 17, 2:19 PM
    • 16,241 Posts
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    atush
    • #2
    • 17th May 17, 2:19 PM
    • #2
    • 17th May 17, 2:19 PM
    The BEST thing would be to put that 40 quid per month into equities. Over ten years, much less 18-20, equities will do far better than cash.

    In a Jisa, or an account of yours (ie isa or not) dedicated to this purpose.
    • eskbanker
    • By eskbanker 17th May 17, 2:20 PM
    • 5,466 Posts
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    eskbanker
    • #3
    • 17th May 17, 2:20 PM
    • #3
    • 17th May 17, 2:20 PM
    You could open a junior ISA in his name (which can be used for stocks and shares rather than cash, likely to grow more over a long period), or a more generic children's account.
    • tbkbt
    • By tbkbt 17th May 17, 4:07 PM
    • 34 Posts
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    tbkbt
    • #4
    • 17th May 17, 4:07 PM
    • #4
    • 17th May 17, 4:07 PM
    The BEST thing would be to put that 40 quid per month into equities. Over ten years, much less 18-20, equities will do far better than cash.

    In a Jisa, or an account of yours (ie isa or not) dedicated to this purpose.
    Originally posted by atush
    thanks, where would i get started with equities, would that let me put money in little at a time?
    • xylophone
    • By xylophone 17th May 17, 4:12 PM
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    xylophone
    • #5
    • 17th May 17, 4:12 PM
    • #5
    • 17th May 17, 4:12 PM
    https://www.gov.uk/junior-individual-savings-accounts/overview

    This can be cash/shares/both.

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

    http://www.hl.co.uk/partners/search/junior-isa?theSource=PCGJJ&Override=1&adg=G+JISAJ+JUE&gcl id=CNac0Pea99MCFeeV7Qod104DbQ

    http://monevator.com/passive-fund-of-funds-the-rivals/
    • benj111
    • By benj111 17th May 17, 4:25 PM
    • 31 Posts
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    benj111
    • #6
    • 17th May 17, 4:25 PM
    • #6
    • 17th May 17, 4:25 PM
    I would agree with Atush. I have memories of my Halifax (building society) savings book, when I eventually closed at 18 it was earning 0.1% interest (in the days when that was actually bad).

    I'm not sure there's ever been an 18 year period where cash has outperformed shares? Although there's a first time for everything.

    I've been looking around for my 8 month old, I've been holding off, waiting for vanguard to announce their products, which they just have and I think that's probably the cheapest you'll find for smaller amounts, (0.15% platform fee) it looks to have a minimum investment of £500, don't know it that will be a problem, but I think that's what I'm going to go with.
    • Flobberchops
    • By Flobberchops 17th May 17, 7:39 PM
    • 553 Posts
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    Flobberchops
    • #7
    • 17th May 17, 7:39 PM
    • #7
    • 17th May 17, 7:39 PM
    An investment JISA is almost certainly the best bet, take a look at what's on offer and take a punt based on fees and how often (and how much) you'll be putting away.

    I think cash still has a role though, I think it's a useful hedge to stocks and shares although statistically it's almost guaranteed to be outperformed over 18 years. Still, I like the straight-line predictability of cash over time, and for that I'd recommend something like the Halifax Kid's Regular Saver (4%, minimum £10/month) or the Barclays Children's Regular Saver (3.5%, minimum £5/month).

    In the example the OP gave, of saving perhaps £40 a month, why not split that 30:10 shares:cash?

    If you want to diversify, remember you can buy Premium Bonds on behalf of a (grand)child, and they also do a 3-year Children's Bond at 2%.
    • atush
    • By atush 18th May 17, 12:56 PM
    • 16,241 Posts
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    atush
    • #8
    • 18th May 17, 12:56 PM
    • #8
    • 18th May 17, 12:56 PM
    thanks, where would i get started with equities, would that let me put money in little at a time?
    Originally posted by tbkbt
    Consult with the parents about opening a Lisa (which they have to open as parents). Other options include investment trust savings plans- I used several for my kids incl Witan and F&C.

    You invest monthly, and they use the money to buy units/shares. They run Jisas and ISas too- if you dont use your isa allowance you can use a ISA to save for them?
    • eskbanker
    • By eskbanker 18th May 17, 1:08 PM
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    eskbanker
    • #9
    • 18th May 17, 1:08 PM
    • #9
    • 18th May 17, 1:08 PM
    Consult with the parents about opening a Lisa (which they have to open as parents).
    Originally posted by atush
    OP is one of the parents as I read it!

    Also, did you mean JISA rather than LISA (which is only available to 18-39 year olds)?
    • fiisch
    • By fiisch 18th May 17, 1:33 PM
    • 163 Posts
    • 62 Thanks
    fiisch
    I've just opened a Halifax JISA for our newborn at 3% interest.


    Halifax junior regular saver pays 4%, but needs renewing every year. I just wanted something to pay a small amount of money in each month and forget about, so went with the straight forward JISA.


    Unfortunately it isn't online so you have to phone-up/go in branch if you want to check how it's performing.
    • jimjames
    • By jimjames 18th May 17, 1:40 PM
    • 12,016 Posts
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    jimjames
    I've used Aberdeen Children's investment plan for my kids. Low charges and allows you access to a variety of investment trusts, monthly payments will also be in your budget.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • atush
    • By atush 18th May 17, 6:08 PM
    • 16,241 Posts
    • 9,911 Thanks
    atush
    OP is one of the parents as I read it!

    Also, did you mean JISA rather than LISA (which is only available to 18-39 year olds)?
    Originally posted by eskbanker
    There was a second thread about infants and not being a parent, got the 2 confused in my second post.

    And yes, Jisa, I am double joined and having a problem typing at the moment- too much digging in the garden so fingers arent working lol
    • atush
    • By atush 18th May 17, 6:09 PM
    • 16,241 Posts
    • 9,911 Thanks
    atush
    I've just opened a Halifax JISA for our newborn at 3% interest.


    Halifax junior regular saver pays 4%, but needs renewing every year. I just wanted something to pay a small amount of money in each month and forget about, so went with the straight forward JISA.


    Unfortunately it isn't online so you have to phone-up/go in branch if you want to check how it's performing.
    Originally posted by fiisch
    Do they offer equities?

    You#ll be lucky to stay ahead of inflation at just 3% for many years
    • Flobberchops
    • By Flobberchops 18th May 17, 6:26 PM
    • 553 Posts
    • 378 Thanks
    Flobberchops
    Do they offer equities?
    Originally posted by atush
    Halifax aren't currently accepting new S&S JISA applications. I was fortunate to get in a few months before they took it off sale - performance to date is around 8% but of course that could (and will) change.
    • Reaper
    • By Reaper 19th May 17, 8:59 AM
    • 6,106 Posts
    • 4,171 Thanks
    Reaper
    A JISA is the simplest option - they are tax exempt and there is no need to declare them even if you or your child ever need to do a tax return. At age 18 it automatically converts to an ISA as control is handed over to your son.

    If you are new to investing one piece of advice - over the next 18 years there will be several stock market crashes. Do NOT be tempted to "pause" your contributions. After all that's when prices are cheapest.
    • tbkbt
    • By tbkbt 19th May 17, 12:02 PM
    • 34 Posts
    • 5 Thanks
    tbkbt
    thanks everyone, sorry i've not been replying, been a rough couple of days. Yes i am one of the parents .
    I would prefer to not have to chop and change it each year as you do with bank accounts.
    I'll have a look into all the options mentioned. my grandfather opened shares for me and they performed well, even though they went through a crash, i definitely agree to ride it out, no point leaving at the bottom, you can't ride it out if you jump off!
    • jimjames
    • By jimjames 19th May 17, 1:38 PM
    • 12,016 Posts
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    jimjames
    I would prefer to not have to chop and change it each year as you do with bank accounts.
    Originally posted by tbkbt
    Equity based investments are ideal for that. Choose the right one and leave for 18 years!
    Remember the saying: if it looks too good to be true it almost certainly is.
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