Where to put £25 P/M for kid?

comicmankev

Just wondering if I could put £25 a month away for my 5 yr old, where the best place is? I look at those 'friendly society' things' but are they any good?

I already put the maximum into the Halifax 10% account (for one year), but this will close soon and wondered what I could continue with (with not as much investment, £100 P/M is pushing me!).

dunstonh

Friendly society with profits funds should be avoided. Some of their unit linked offerings are not bad. Although you can usually do better with a unit trust/OEIC yourself (depending on your personal tax status).

JackyF

If you're considering contributing for many years, let's say until they are aged 18 (assuming they are very young now), I'd be inclined to take more risk. The stock market has its ups and downs but over 10-15 years should see you well ahead on any deposit type account. Without making any recommendation, I'd point you towards investment trust saving schemes of which there are many.

J

comicmankev

She is 5 years old and am looking to put £25 P/M away til at least 21, maybe later.

Not to hot on some of the terminology used above, so if you could give more details then that would be great.

Anywhere I can look at on the net for reference?

david78

What about an investment trust savings scheme. Some of these offer special plans tailored for children. Low charges and plenty of scope to make lots of money! Have a look at Baillie Gifford and F&C plans and others. If more short term, a good regular savings account.

Speculator

Steer clear of Friendly Societies and personally, I would avoid anything linked to the stock market. I prefer high interest regular savings account like the Scarborough Mysavings paying 6.00% gross or the Scarborough Childrens Savings Bond paying 5.50% and the interest rate on the Childrens Bond is guaranteed to be 1% higher than the Bank of England base rate for the full three year term.

Click here..

http://www.scarboroughbs.co.uk/savingsandinvestments/products/childrens_saving_bond.html

http://www.scarboroughbs.co.uk/savingsandinvestments/products/my_savings.html

comicmankev

Thanks for the advice. I'm up for a bit of risk, and very much against the minimal 5-6% from regular child savers. Even if it's a tracker, it still isnt going to mean much.

Would consider a child investment trust, but the fees always look quite high. I will check out the 2 mentioned above!

Mikeyorks

comicmankev wrote:

I already put the maximum into the Halifax 10% account (for one year), but this will close soon and wondered what I could continue with (with not as much investment, £100 P/M is pushing me!).

The way you phrase that suggests the 10% account closes after 1 year? It doesn't - you can continue into future years - and at anything from £10 - £100 monthly. See Halifax part T&Cs below :

At this point your Halifax Children's Regular Saver account is empty and a new interest rate will start on the next deposit being made. You simply continue to save using the same standing order, receiving another year of a great fixed interest rate.

But you will need to find a pot to put the £1200 from this last year into. ISA (so long as you haven't one already) - in your name - that way you don't bear any tax implications?

Speculator

comicmankev wrote:

I already put the maximum into the Halifax 10% account (for one year), but this will close soon and wondered what I could continue with (with not as much investment, £100 P/M is pushing me!).

Can't you open another Halifax 10% a/c when the current one matures?

also..from the Halifax website..

Having one account per adult, per child (under 16), so for example, each parent, grandparent, friend etc can hold an account for the same child

I think this means both mum and dad, grand parent etc can open the 10% a/c for the same child.

JackyF

comicmankev wrote:

.

Anywhere I can look at on the net for reference?

Have a look at https://www.aitc.co.uk which will probably tell you more than you wanted to know about investment trusts.

HTH

J

Speculator

Also, try these links...

http://www.moneyfacts.co.uk/menus/main/menu_child.htm

http://www.moneyfacts.co.uk/features/ctf.asp