Use your child - best child savings account

loobylou2

Hi, I hope someone can help with this as I really need some advice. My grandmother passed away last September and she left each of my 3 children £1500. Her will though states that they cannot have the money until they are 21 years of age. They are currently aged 16,14 and 8. My father who was the executor for her has now given me the money and I have to find suitable accounts for them. Does anybody have any idea where I can place this money given the ages of my children and the fact that I want to respect my grandmothers wishes and make sure that they don't get the cash until they are 21. Any help or advice re this would be greatly appreciated. Thank you.

xylophone

they are 21 years of age

This makes life awkward as such a stipulation would normally require that a trust other than a bare trust be set up. probably an accumulation trust? http://www.hmrc.gov.uk/trusts/types/

However, in view of the modest amounts, and assuming that you are not resident in Scotland, one solution might be to hold the money in bare trust until shortly before each child turned 18 when you would invest the money in a three year bond which did not allow access until the end of the term?

The trustee name could be removed when the child turned 18 and he would have control of the account but still be bound by its terms.

See http://uk.virginmoney.com/virgin/savings/learn/childrens-accounts/ and note the information about R85 when the child turns 16 - the trustee would have to reclaim any overpaid tax on behalf of the child.

Once the child turned 18 he would complete R85 for himself if eligible to do so.

Puffin74

My 2 boys have the Halifax 6% regular saver - as mentioned in the article the only draw back is that you can only pay a max of £100 a month in.

We wanted to get them an ISA too but as we'd signed them both up the Child Trust Fund we were told we couldn't have both - but I hear this may be changing next year?

Moomin_Baggins

My niece has just had a baby and I would like to open a regular savings account for the baby so that he has some money when he is 18. As I'm not his parent or grandparent what are my options? Ideally I would like it to be inaccessible until he is 18.I don't mind if it is monthly contributions or annual lump sum.
Many Thanks
Becky

xylophone

Have the child's parents set up a JISA? You could contribute.
https://www.gov.uk/junior-individual-savings-accounts/overview

Or in view of the long time scale, you might want to consider monthly investment in a stock market based product held in bare trust?

Example here http://www.sit.co.uk/products/investing_for_children/features/questions_and_answers/

007Mole

Maybe I am being very old-fashioned, but with 2 young children I would like them to both have accounts that they can physically pay money into (I had both building society and post offices accounts for this as a child). The sums we are talking are not huge; we already have money invested by various means for longer-term savings. It is more the access that we are after but, living in the Peak District, there are no building societies near to us.....any suggestions please?

Dealtime

I have read through the posts and links and still a bit stumped.

We already have accounts for the kids into which we pay smallish regular amounts (we should probably take more time to make sure they are the best accounts but that is a different topic).

Grandparents want to give £20k for our 15yr old to get a start when he is older. So it is too much to pay into ISA. Many of the savings accounts seem to require regular deposits which we do not want and upper limits below £20k.

We are nervous of investments for a term of less than 10 years (we are quite conservative savers).

So that seems to eliminate all options.

Any suggestions?

xylophone

http://www.nationwide.co.uk/products/savings/our-savings-accounts/all-savings-accounts

Smart Limited Access might suit?

"Up to 3.00% gross p.a./AER
(variable) 1 withdrawal including closure is permitted per year. Further withdrawals or subsequent closure is permitted subject to a lower interest rate of 0.75% gross p.a./AER variable"

mbailey

http://www.halifax.co.uk/savings/accounts/branch-accounts/#youngsaver

Halifax Young Saver

"3.00% gross/AER on balances from £1 up to £20,000"

mbailey

Northern Rock (Virgin Money now) used to have a good children's account, but now only offer 2% upto £10,000.