Saving for a 7 Year Old

Lee_In_Northumberland

Hi All

New to the board, but looking for advice please. I want to put away between £200 and £250 per month for my son. He already has a standard abbey child account with approx £1k in it ; and I am saving a maximum £100 per month in the Halifax Child regular saver account at 10%, which seems sensible but where do I invest the remaining 100-150? (and do I move the 1k as well?) I need access to the savings 'just in case' ; but really dont want the money to mature until he is 18 years plus. Ive seen F&C's child investment trust which seems intriguing, and if I decided on this, a mix of British Assetts and their Pacific fund options seems a good balance? Trouble is Im being influenced by marketing, and Im not sure if this is regarded as a good fund. Suggestions on alternatives to research would be most welcome.

Many thanks - Lee

clairbear_3

Hiya,
Id buy monthly PREMIUM BONDS alongside the HALIFAX saver ,lets face it
you wont get rich with that amount in savings and with the worldwide recession youde be very lucky to do well in equities.Some people will crab PBs but the capital is available and you could win a big prize
good luck
PS you have to tell HALIFAX to pay gross on the childs saver or they will take off 20% tax!

martinman3

This thread should give you some more options
http://forums.moneysavingexpert.com/showthread.html?t=1096219

Also if you think that inflation will rise significantly over the next two years there is also the Inflation Buster Bond (Issue 9) from Leeds BS which can be opened in trust for a child, min £1000 though and remember to fill in a R85.
http://www.leedsbuildingsociety.co.uk/savings/inflation_buster_bond.html

opinions4u

clairbear wrote: »

Hiya,
Id buy monthly PREMIUM BONDS alongside the HALIFAX saver ,lets face it
you wont get rich with that amount in savings and with the worldwide recession youde be very lucky to do well in equities.Some people will crab PBs but the capital is available and you could win a big prize
good luck
PS you have to tell HALIFAX to pay gross on the childs saver or they will take off 20% tax!

Careful on the Premium Bonds idea. They earn no interest - you are effectively gambling the interest the chid would have earned. I think the rate of the prizepot works out at 4% a year which is significantly lower than you could get through investing in an appropriate savings account.

So while they may be fun and the big winners will be happy, they are not a great form of investment, espeically for a non-taxpayer.

Would a £1m win potentially damage a child anyway?

Your call!