Use your child - best child savings account

bdal

Hi,

My children,6 and 3 have just been given £5,000 each by their grand-mother. They each have a child trust fund already.
I want to maximise that money and could do with some advice on what are the best options. I don't need access to the accounts.
Many thanks

abacusaqua

I have some money to invest for my son but need access to it in 2 years. I have seen some details about good fixed 3-year rates but does anyone know of anything for just 2 years?

supremetwo

martinman3 wrote: »

You can get 3% AER on the Northern Rock Little Rock Instant Access Account.

Although the article and the NR web site says 'Operated via a passbook at any Northern Rock branch', there is an option for postal applications.

Phone 0191 279 4405.

See also (add http: // www. in front of the link below):-


northernrock.co.uk/download.asp?file=summary-box/Little_Rock_summary_box.pdf

Access Branch or post via Head Office.

sdsgirl

My children have just inherited £2000 each which I would like to invest to for the most benefit - particularly as one child will be 13 in 2 weeks! - The money was passed to me to invest for them to be given when they are 18. My daughter already has a child trust fund. I was looking at a childrens savings bond but to be honest the rates at the moment seem really low at the moment, at a fixed rate. I am concerned that if I do this as interests rates do start to increase in a year or twos time my children will lose out. Any advice on the best accounts - or should I just forget the savings bond idea? Thanks

Midlander_2

I'm trawling through the minefield that is child savings/investments at the moment.
I was all ready to open a Halifax Saver for my new Godchild with its 6% interest but then started to think about long term and ethical considerations.

I would like to save/invest for her ethically. She already has a CTF ethical fund and a savings account.

I've looked at the Co-op savings - their interest isn't very impressive although the ethics are spot on and I like the Born-free element.

Can anyone shed light on any other possible accounts - I don't mind it being an investment with low level risk because I'm hoping to do this long term. I would want to put a small direct debit of £10 a month to this but am happy to open with up to £100.

Or am I better just setting up a direct debit to her existing CTF?

Thanks in anticipation!!

Rosied25

I looked into this account earlier in the week. The young man assisting me even told me it doesn't earn 6%! Even if you deposit the max £100.00 a month, at the end of term when the account has £1200.00 you only earn £38.00 interest - go figure!!!

Anyone know of a long term savings account for children that earns good interest or should I just opt for an ISA??

Thanks
Rosied25

martinman3

Rosied25 wrote: »

I looked into this account earlier in the week. The young man assisting me even told me it doesn't earn 6%! Even if you deposit the max £100.00 a month, at the end of term when the account has £1200.00 you only earn £38.00 interest - go figure!!!

Anyone know of a long term savings account for children that earns good interest or should I just opt for an ISA??

Thanks
Rosied25

In the current economic climate, £38 on £1200 in one year is good interest, approx 3%.
Regular savings accounts are meant for saving from income or a feeder account which itself is earning good interest.

It depends on whether you have more than £1200 as a lump sum, if so you could put it in a fixed rate bond opened in trust with an R85 to get the interest paid gross. But you are effectively taking a risk on when and how much rates will be rising.

Or you could put it in the Northern Rock Little Rock account at 3% AER instant access and wait and see what happens.

p.s. NR are currently offering good rates to attract savers, they have a 3.5% 2 year bond and a 3 year stepped bond equivalent to 3.99% per year which can be opened in trust according to the application forms.
Halifax have the Guaranteed Reserve for 2 years at 3.45% and 3 years at 4.00% which can be opened in trust.

bylromarha

Just beware of Halifax regular saver kids account - both OH and I each opened an account for each of our kids. This took 3 trips to the bank (diff branches across our city) as the staff didn't take copies of docs or fill in the right forms.

Last week I get the statement through as the regular saver matured...Halifax, despite us having filled in R85s, have the account set up as tax payers. On a kids account - crazy.

We now have to claim it back from HMRC - whilst in branch withdrawing from the saveforit (that took 45 minutes at the cashiers window) we listened to 2 different reasonable complaints from customers. Halifax have lost our business through this.

In contrast Northern Rock account I set up in branch filled in all details, she forgot the R85s, so they rung up the next day and told us to expect them in the post. They arrived and we were verbally informed the account was set up for non tax payers next time we made a deposit.

rmg

Hello.

My 2 children have received 5k each in inheritance.

I understand that I cannot add this to their CTFs.

What type of account would be best. Ideally I would like to put it into an account in their name where it could sit and collect interest until they are 21.

I do not want any risk associated with the accounts.

It would be nice to have the option to add to it at times but this is not a requirement.

Many thanks.

Richard.


edit: after further reading it looks like my best options are either a Yorkshire 1 day account or a Halifax Guaranteed Reserve

The Yorkshire can stay locked until 21 and have more added but the Halifax has a much better rate of interest.

My solicitor is being quite strict about what accounts the money can go into so I will see if the Halifax is acceptable.

Wintersmyth77

Can anyone suggest an account for my children. We have a three year old, eighteen mnth old and nine week old boys. We'd like an account that we can contribute to as and when we can afford it rather than a regular saver as we cannot commit to this presently.

We would also like the account not to revert to each boy on their sixteenth or eighteenth birthdays, we'd like an account that we can sign over from our control to theirs, when we feel that they are financially responsible whether that be 16, 25 or even 50 lol. I know that I wasted the money that my parents, grandparents and great aunt had put in an account for me when I was 18 because I wasn't very sensible and I don't want to give my children chance to repeat that.