How to save for college?

fbrander

I currently have about £5500 in a Pru with profits savings plan, paying in £60 a month. It matures in 2012. It's supposed to help put the kids through Uni but I'm worried its not going to pay out very much. Is there something better and less risky I could invest in that would give me a lump sum in about 5 years? I could invest the £5500 and pay in about £100 a month.

grumbler

fbrander wrote:

...Is there something better and less risky

It is difficult to compare, but if you are a taxpayer, the safest way to save is cash ISA, which allows you to save up to £3000 per financial year.
With current best rates about 5% if you save £100 p.m. you will have about £6900 in 5 years. Lump sum £5500 will grow to £7020.
However, interest rates can either rise or drop (more likely at the moment).
Also to get the best rate usually you must switch provider every year that is quite easy though.