Child / Student Acoount

jaygee_2

I currently have two Santander accounts for my daughters aged 14 & 16 (in their names) earning peanuts with c£20k in each.

Looking for a place to put it geared to drip feeding them when they go to Uni.

I would like to remain in control of the drip!

I don't mind taking a bit of a risk.

Any suggestions?

glider3560

It would be very difficult to keep the accounts in their names and remain control when they become adults.

You may be better off keeping the money in your own name, in a high paying adult savings account, then transferring them the money when required.

anselld

Why not encourage them to fund Uni via normal methods ( student loan, part time work, etc) Meanwhile feed 5100 per year (from 16 on) into cash ISA. That way they get a lump sum at the end which they can choose to keep in tax free savings, fund house deposit, pay off student loan, etc, etc.

Regarding feed accounts meantime it is difficult, perhaps just Halifax 3.55% 2y Fixed websaver as they will not be at Uni till then.

baby_boomer

anselld wrote: »

feed 5100 per year (from 16 on) into cash ISA.

The trouble with Cash ISAs for young people who pay no tax is that you lose money on them compared with other accounts which pay higher interest.

This doesn't matter if they are going to keep these cash ISAs for life. But as the OP suggests, there are lots of reasons, like a house deposit, for young people spending the ISA money sooner rather than later.

jaygee_2

Thanks for the advice.

Totally agree that they need to be self financing and understand how to budget.

The drip is likely to be rare and difficult to find!

However, once they have demonstrated they can do it and have a "worthwhile" degree to show and hopefully a job I would like to give them something to skip a step on the ladder.