child's saving best thing to do with £4,000

jenjade

hi all,

i was wondering if i can pick you brains as you guys know so much i don't.

my dd (6 years) has £4,000 saved for her future it was in a locked bond but this is ending next month and i was wondering if anyone can advise me what would be the best to keep the capital safe and gain as much interest as possible. i don't mind locking it up but with the interest rates like there are i am not sure what to do for the best!!

it is with c and g at the moment and they have offered to lock it back up for another year at 5.75% p.a gross/ AER... is this a good idea???

any help or advice would be great money is so hard to get i really want to try and do the best with it to help it grow without risking it at all!!!

thanks in advance Jen

jenjade

does the fact no one replied mean i should just lock it up for another year?? some advice would be great thanks you

isofa

You won't risk it if you save it anywhere, it's well within the 35K covered by the FSCS scheme, but that anyone is going to lose money anyway.

If you invest it in stocks/shares etc, then there will be a risk element.

They may be better rates on offer on savings accounts (you can get 6.55% instant access, or 7% one year fixed rate for non-child savings accounts online) but must be with child friendly accounts (I assume), check out top accounts listed at Moneyfacts.

martinman3

Looking at moneyfacts.co.uk I believe that National Counties BS 1 year bond at 6.61% is currently the highest rate for an account which allows parents to open in trust for a child. http://www.ncbs.co.uk/ncbs.asp

Compared to your C&G 1 year bond at 5.75% that would be an extra £34.40 in interest.