Children's Bond or Savings account

Blue_Toby

Please be gentle with me - this is my first time!

We invested £1000 in 4 year bonds for our kids and they have recently matured. We have been tardy in reinvesting the money :doh, but want to rectify this as soon as possible!

Do we:

• Invest the money in another bond again like the one at the Abbey at 4.6% or similar - any suggestions welcome
• Put it in a savings account, like the 5% from the Saffron Waldren society?

I know that the Halifax is offering 10% for regular monthly deposits of up to £100, but we don't want to open a current account and think that we'd do better just dealing with the whole amount now as one chunk.

All suggestions welcome. I will also post this in the Family forum.

Blue_Toby

I guess the lack of replies would suggest that I have either committed a grave sin in the way/what I posted, OR that no-one can help me.

Well my research since posting has turned up another bond from the Norwich and Peterborough BS that pays 4.8% fixed rate for 5 years. This account can be managed online. It would appear to be the best rate available currently.

Martin's article on Children's savings has mention the Child Benefit Account from the Coventry BS. This actually is 2 accounts called Family 1st. One is for Child Benefit and pays 7.25% in the first year and then 6.25% in the second year. They also open an account for Family Savings which is currently paying 5%, which includes a 0.5% bonus in the first year. This may not be the best rate out there and it is taxable, but it's not to be sniffed at either. I may well move from ING direct (4.75%).

All rates are AER btw.

Hope this information is of use to someone else.

dunstonh

I guess the lack of replies would suggest that I have either committed a grave sin in the way/what I posted, OR that no-one can help me.

I was initially drawn to the thread when you mentioned children bond in the title. However, when it became clear you were looking at fixed term deposits rather than bonds, I chose not to respond. Not personal but savings accounts are of little interest to me and I have nothing to offer you which would help.

Its possible that the usual savings account responders saw "bond" and chose to ignore it thinking it was investment rather than saving as well.

Just so you know you werent being totally ignored.

Blue_Toby

Thanks for the advice. I'm not very good with the jargon, but I know what I want to achieve! I will choose my words and particularly in the subject line, very carefully next time!

dunstonh

Its not your fault. Building societies love issuing "bonds" which are really fixed term deposits and everyone seems to get savings and investments mixed up.

As it happens, have you considered childrens bonds, as in investments, rather than deposits? With the long term involved (often 18-20 years) the risk is diluted over that time.

Blue_Toby

Don't know much about these long term Bonds. All I know is that I have some money, well the kids have some money they were given by their Grandparents, when they were born, and our first investments for one of them has matured and so we want to get the best we can for them now.