Saving for my son

MonkeyBusiness_3

I want to open a savings account in my sons name for when he is 18, he is 6 months at the moment.

I have child benefit to go into it and we are going to pay into it regularly.

Where is the best place to open an account for this reason?

Thanks

ses6jwg

Halifax Regular Saver sounds like the perfect product.

Save between £10 and £100 for 12 months and get 6% on maturity.

The_MoneySavingKid

Surely for a child of this age, a CTF would be best?

ses6jwg

The_MoneySavingKid wrote: »

Surely for a child of this age, a CTF would be best?

When they get to 18, the money is legally theirs, so they can go and blow it on clothes and drink if they wish.

I think its very wise to open 1 or 2 accounts under your control alongside the CTF.

Mr.Mulla

I would have to agree with ses6jwg. It would be best to divide the money that you want to set aside for you child. You can open up a savings account and a CTF for your child. When they reach a certain age it would be a good idea to encourage children to save for themselves at an early age. Getting them to put money aside, either as a lump sum or in a regular savings plan, helps instill the saving habit.

MonkeyBusiness_3

Were do i go to open a CTF?

sheslookinhot

Would it not be better to invest in some funds on his behalf ?

giger

MonkeyBusiness wrote: »

Were do i go to open a CTF?

Hi, I suugest reading this MSE guide on CTFs as there are hundreds to choose from. Some are straight forward cash based accounts, others are investment funds. Only you can decided which one and which provider is correct.

http://www.moneysavingexpert.com/savings/child-trust-fund-vouchers

As has been said here, CTFs are opened in your childs name, once your son is 18 the money is legally his to do with what he likes and you have no access to it.

cloud_dog

giger wrote: »

As has been said here, CTFs are opened in your childs name, once your son is 18 the money is legally his to do with what he likes and you have no access to it.

... A word of caution, please do not assume you have any control over a savings account opened in trust for the child, unless the account specifically stipulates the trust timeframe.

For example, I believe, the child has a legal right to all monies opened in a normal savings account (opened in your name with the childs initials against it). The only reason I mention this was because there was a court case (involving a lot of money) but using the same sort of 'normal' childs savings account and the court confirmed that the child (I think they were aged about 11) were leagally entitled to the money and could do what they wished with it.

I'll see if I can find the article but, just a word of caution to parents who feel they control the money.

The above is not relevant if the savings account T&Cs stipulate a specific age when ownership of the money occurs. Having said that most accounts which stipulate an age use age 18 (same as the CTF) and there are only a very few which go up to age 21. Anything overandabove this would require an appropriate legal trust drawn up.