Use your child - best child savings account

chambta

Given the pitiful rates around for children's accounts is there any issue with drawing the cash out and my partner (a non tax payer) opening a 1-yr bond?

Locally Derbyshire BS seem a reasonable bet.

tom3james

I have accounts with the Post Office -ns&i - for my 3 grandsons into which I hve been paying 20.00each every 3 months or so. They have approx 500.00, 600.00 and 700.00 respectively but the interest received last year was only 1.20, 1.50 and 1.70. They are aged 8yrs, 7yrs and 5yrs and this money is for when they are 18 or 21 so I am looking long term!! What do you recommend I do with this money please?

maisiecat

How do I continue saving for my son now that he has turned 16? I don't want him to be able to spend the money we've been saving for him, and I don't want to have the money in my own name? Is there a third way now that he's too old for a child's savings account?

cathy66_2

Our 8 yr old has inherited £10,000 and we would like some advice of the best way to save/invest this. Also advice about tax implications as the name on the cheque from the solicitor's is in our names. The will states for us to put it in trust until she is 18. How can we make sure the tax man doesn't think it's our money?

Thanks

Gymgenius

chambta wrote: »

Given the pitiful rates around for children's accounts is there any issue with drawing the cash out and my partner (a non tax payer) opening a 1-yr bond?

Locally Derbyshire BS seem a reasonable bet.

I did exactly that with my children's savings last year - and actually pooled them together to enable me to open a bond with a higher minimum deposit (and higher interest).

martinman3

cathy66 wrote: »

Our 8 yr old has inherited £10,000 and we would like some advice of the best way to save/invest this. Also advice about tax implications as the name on the cheque from the solicitor's is in our names. The will states for us to put it in trust until she is 18. How can we make sure the tax man doesn't think it's our money?

Thanks

Personally, I would return the cheque to the solicitor and get another made out to the beneficary, as it should have been in the first place.
If this new cheque is used to open the initial account held in trust then there could be no possibility of the tax man thinking it was your money.

As far as advice goes, I would suggest that you search this forum for similar questions, and there are a lot, to see what has been suggested previously.

I should add that for child specific savings accounts the age at which the beneficiary gains control of the account varies, most are less than 18. This post listed the best at that time http://forums.moneysavingexpert.com/showpost.html?p=26945205&postcount=8
You may need to move any money out which is left in one of these accounts before your daughter reaches the age at which she would gain control of the account.

MarkyMarkD

It seems a bit pointless to do what you propose, martinman3. Any query from HMRC and you can produce the letter from the solicitor. Simples.

yorkshirewhiterose_2

I have read the section on child savings, learnt a lot but still need more advice please. We have 2 children who each receive an amount of money each year from a married couple in the family who live abroad. There is a trust document which states that we as parents are trustees until the children are 21. So in effect we need to find the best way of growing this ever-increasing amount of money for the next 14 years and we/they obviously won't be spending any of it until they are 21. Although the amounts earnt good interest until Dec 09 in child savings accounts the interest rate is now poor and we need to find the best place for the money. Should we be considering bonds as well as things like several Halifax 6% interest accounts set up by various family members?
Thank you.

deefadog

We have money totaling 6k for our oldest daughter (6 years old) and 2k for our youngest, all money is not tied in at the moment and we want to invest in a holiday home, can we withdraw the children's money and put that towards the investment, which will be for them eventually, but in our names for the foreseeable future. Are there any implications with this?

Thanks

welshmoneylover

Personally, I wouldn't spend any of my kids money on anything I wanted for myself. I think it would be morally wrong at least.

I would look at other options of financing my own purchases.