Where to put £25 P/M for kid?

comicmankev

The account continues after the first year, but at a normal %%% rate, which certainly aint gonna be 10%!

As for the opening of another parent, that I missed, that could be good! Thanks. And thanks for all the other info, I will have a lot of reading this weekend!

ReportInvestor

For £25 pm you could set up a bare trust at no extra cost (which would take out the tax issues of future income from parental gifts) with

Foreign & Colonial Investment Trust managers - See this link

As suggested above, an investment trust carries risks bu might be suitable for long term investment & regular saving which would reduce some of risk.

The bare trust would deliver the investment to the child at 18.

Mikeyorks

comicmankev wrote:

The account continues after the first year, but at a normal %%% rate, which certainly aint gonna be 10%!

Hmmmm - sorry about that. Took it on trust, after a bit of a check, it was the same as the 7% adult saver - which does continue at the same rate. Did think that 'and a new interest rate' was a bit odd - so, apologies, should have looked deeper and would have found this tucked well away :-

How long is the 10% interest rate payable?
The 10% rate is fixed for one year from when the opening credit is received. If you continue to fund in subsequent years, we will communicate the new fixed rate to you.

Bit devious. Apologies.