Best Long term savings account

woody382

Hi, I am looking to save £100 per month for when my daughter hopefully goes to Uni in 15 years time. I want a saving account / scheme which offers a high interest rate over a long term, but has to be risk free. Anyone know of a saving account which meets my needs.

cheers

opinions4u

Savings wise, I'd suggest looking at regular saver accounts that currently pay 6% (e.g. Halifax) and review annually what to do with the funds you have.

Don't rule out topping up Child Trust Fund etc each time it matures.

but has to be risk free

Why? Over 15 years you should be able to generate significantly better returns from a suitable investment fund.

Please clarify exactly what your concerns are.

woody382

Just in case circumstances change and I have to use some of the money, I wanted to be able to gain access to the money without losing what I paid into the scheme. what investment funds would you suggest, as I will only be saving £100 per month with no lump sum.

Jake'sGran

You said long term and there are no long term savings accounts paying a "high" rate. I have always saved from my grandsons from when they were very young. At the beginning I put money in The Alliance Trust. This is an Investment Trust as opposed to a unit trust or OEIC . To be honest I don't know how much it made as it was handed over to their Dad when they were both 16 or over. I did save in fixed rate savings accounts and in those days the rates were really good.

If you are also considering stock market investments some of the well known companies will accept £100 per month. I think most of them would really. It is smaller amounts that some will not consider. I am thinking of people like Fidelity, M&G. Have a look at the link below.

http://www.fool.co.uk/isas/information/unit-trusts-oeics.aspx

My first grandson is now at Sheffield Uni and has his own car as a result of the money I saved for him. (But the insurance cost more than the car)

Finally, if you want access to the money you are going to put away you would have to settle for something like Egg savings which is paying 3.25% but this includes a bonus which ends after one year. Birmingham Midshires are doing fixed rate bonds paying decent rates for 2,3, 4 or 5 years but there is a penalty (something like 60 days loss of interest) if you make a withdrawal.

Don't bother with the monthly savers as the rate will be no better after one year than the Egg account.

woody382

Thankyou. Great advice. I'll look into it.

cheers