Use your child - best child savings account

icemaiden37

4 Grandchildren Have Just Inherited Share Of £200000 Designated To Pay For Their Education.@ £12000 Per Annum . What Is The Best Way To Invest This For Them

baby_boomer

£200K won't go very far for four .

What are the grandchildren's ages and the years they need the fees?

It will be a complex calculation & don't forget to assume 7% pa school fee inflation.

And are you hoping for anything left over to pay uni fees?

I'd use some medim/long term fixed rate savings bonds, making sure that the interest is paid gross. That way the money should at least hold its real value for the next 3-4 years and I expect that grandparents and parents will chip in for any shortfall when the fees become due.

neilbal

Info_maniac: My 2 daughters (4 & 2) both have 2x10% Halifax Regular Savers with one month to go with both me and my wife paying £100 per month (total £400pcm). This keeps interest (just) below the HMRC tax limit.

I am thinking of taking the £4800 capital to MY account and using that again next year for the monthly payments, leaving the Save4It interest for the children. Then again next saver year, the year after etc. eventually giving the kids the original £2400.

I think the funds are definately for the benefit of my children - they get the interest and the capital so I'd call this method tax avoidance rather than evasion and therefore allowed. Does everyone agree?
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Also they were opened on Nov 20. Then payments 1 Dec, 1 Jan etc leaving the 12th payment on 1 Oct. I wish to keep the account for a further year. If I make a payment 1 Nov I'll have made 13x£100 payments in this RegSaver year so do I have to wait until the 22Nov for payment or can I make a payment 1Nov (£1300+interest) and another 22Nov and another 1Dec?

girlatplay

If you can show that you are using the funds for the benefit of your children, there should be no problem. Info_maniac said (s)he may plan to transfer all the money back to his/her account and did not elaborate further on that.

According to the Halifax web site, you are not allowed to deposit more than £100 in a month into the Children's Regular Saver. 1 payment of £100 on 1st November and a further payment of £100 on 22nd November takes payments for November to £200 which is not allowed. Perhaps you could contact the Bank for clarification.

lyndseyyorkshire

Hi - please can someone advise if children have the same protection as adults in banking institutions of up to 35k please?
Thank you

musicmaker_2

Hi,
My daughter (age 4) has just over £1200 that has been in a couple of fixed rate saving Bonds since she was born (so that the money was not touchable basically). The latest, with the Coventry BS, finishes at the end of Sept. It is in my daughter's name, though I (Mum) invested it for her. Would it be better put into an ISA of mine (with Nationwide)? What is the best that I can do with it? I have no interest in touching this money until she or her brother need it when they leave school.

Desperate_Dan_3

I'd like to ask a question regarding the 'Halifax Children's Regular Saver'.

I would like to desposit an amount each month (can be £10-£100, but undecided ask yet). Can this amount be changed in the future and can we add 'one-off' payments on odd occasions (ie birthdays)?

martinman3

musicmaker wrote: »

Hi,
My daughter (age 4) has just over £1200 that has been in a couple of fixed rate saving Bonds since she was born (so that the money was not touchable basically). The latest, with the Coventry BS, finishes at the end of Sept. It is in my daughter's name, though I (Mum) invested it for her. Would it be better put into an ISA of mine (with Nationwide)? What is the best that I can do with it? I have no interest in touching this money until she or her brother need it when they leave school.

Looking at the Coventry BS website it seems that they can re-invest the proceeds in a new bond, is this the 1 year (approx) CS Fixed Bond (106) paying 6.30% gross ? Was the interest paid gross on the old bond (i.e. R85 filled in) ? If it wasn't you should claim all the tax back from HMRC.

You won't get a rate as high as that on a Nationwide ISA although other providers do. There are not many good longer term fixed rates at the moment, you may find it simpler to stay with the Coventry BS for another year until the new bond matures and then move it.

Obviously, if you put it in an ISA in your name you will be using some of your £3600 annual contribution. This would only matter if you already have the full £3600 saved or available to save for this tax year.

dpw8998

My 2 grandaughters have just inherited £3000 each, they are aged 4 and 12 and no access is required until they are 21,what would the best most beneficial way of investing/banking please

Froggitt

As shares are worth pish right now, might be a good time to buy some kind of equity investment fund and put them away. Maybe something like Fidelity Special Situations......bit in UK and bit in foreign?

Bank shares or retail shares I would also go for for the long term.

Not advice.......just my opinion.