Where is best to save child benefit for my children?

Baby_A

Hi

I want to start saving my childrens child benefit for them in a account with a high interest rate. I dont intend to withdraw money at any point so I am happy to have it fixed in for a long term if this gives me a better deal. Although I will have the account in their name, I want to make sure I have control of it, so they dont get automatic access when they are 18.

Any ideas whats the best option for me on the market.

TIA

caroleiw

My two each have a Halifax Childrens Regular Saver http://www.halifax.co.uk/savings/childregularsaver.asp which pays 10% for 1 year on regular payments between £10-£100. Register for gross tax as these are the childrens accounts.

I also put their child benefit into Coventry Family 1st which pays 7.25% gross (5.25% net) for 1st year, 6.25% (5.0% net) 2nd year, 5% variable 3rd year.

They also have Chelsea Ready Steady Save accounts.

See Martins article http://www.moneysavingexpert.com/savings/child-savings-tax-free which gives all the required info.

Hope this helps,
Carole

opinions4u

1) Save into Halifax Regular Saver and get 10%.
2) Annually, they return the capital and interest in to a Save4It account paying 5.55%.
3) Take this as an opportunity to review once a year exactly what savings / investing schemes are right for the children: what will you do with that lump sum?
4) Answer to (3) could be to build up Child Trust Fund tax free (if the child is young enough) or invest in a Bare Trust with an Investment Trust like Alliance Trust who will then return the value to your children when they reach 18. If you don't like the risk of this, simple high interest fixed rate / fixed term savings may be best - as I said, review your options annually.
5) When the sums saved are becoming significant, see a reputable IFA.

Great idea to do this, and good luck with building up a valuable start to your kids' adult life.

LittleVoice

Baby_A wrote: »

Hi
Although I will have the account in their name, I want to make sure I have control of it, so they dont get automatic access when they are 18.

If you mean that you would want to restrict an adult's right to access their own money, then I think you will find this difficult - unless, just before their 18th birthdays, you transferred the funds to an account which didn't allow withdrawals for a fixed term.