Child savings advice needed

Dan_Abnormal

Hi,

I have opened up a non-stake holder account for my child, and their CTF voucher has been placed into this, a standing order has also been set up, so each month money is going into this account. The money in this account would be for further eduction.

What my wife and I would like to do is have another account for our child, which again we pay into each month, however, we have both decided that this account would be kept “hidden” from our child, and when they are our child is in her mid twenties, and a little more responsible, we will have this money for her.

We both know of people who have had money given to them at 18 or 21, and its been spent on booze fulled holidays and not much else!, and now they wish they had been given the money later in life when they could of done with it for a deposit on a flat, to start a business and so on.

Now if I was to set up a child saver account, which is higher interest, and pay into this, then legally this surely would have to be declared to our child at 16, and they would have access to that account?. So do I set up a high interest account in my wife’s and my name, and we simply pay into this each month, that way having total access and control over the account and giving our child the money when we feel its appropriate?

Any guidance on this would be most appreciated!