What saving account to open for child saving? Help needed!!

u05rdh

Hi

My partner and I and wanting to open a savings accound for our 5 week old boy so that when he's 18 or 21 he will have a lump some of cash he can use to buy a house, go travelling with or do what ever he wants with.

We have looked at lots of accounts but were really unsure as what to do. We would like to put in between £100 to £250 a months and we won't be needing instant access to the account.

I have looked at child trust fund accounts but there rate of interest seem to be a lot lower that a regular saver. Would the best route be to put the £250 for the govement into a trust fund and the rest into a regular savings account?

Any help welcome!!

Thanks

Richard

Primrose

As you looking long term, you might want to think about putting money into a unit trust. I know the stock market is very volatile at the moment but over 18 or 21 years you are far more likely to get a much better return than a savings deposit account. Many unit trust funds will accept a monthly standing order of that levek. Alternatively, split the amount into two different monthly payments, one going into a regular saver account, and the other into a unit trust and see after five years which has made the most gains.