Saving for godsons

dragonthief

I have two young godsons, and I would like to save a little each month for them, (a modest amount, though, since I am not rich).

What is the best way to do this, and as tax efficiently as possible? (My ISA allowance is already taken, so that's a non-starter.)

Jake'sGran

dragonthief wrote:

I have two young godsons, and I would like to save a little each month for them, (a modest amount, though, since I am not rich).

What is the best way to do this, and as tax efficiently as possible? (My ISA allowance is already taken, so that's a non-starter.)

They have their own tax allowance anyway so you will not need to think of ISAs unless they have a lot of income from somewhere else. I save for my two grandsons in fixed rate bonds each year. There are some decent ones around at the moment i.e. paying about 5%+. The maximum allowed per annum to give in this way is £3000. Interest over a certain amount is considered part of their parent's income and would taxable (if the parents pay tax that is). Some Unit trust providers have schemes for saving for children and you could look at those too.

MinniMe_2

Halifax do a childrens regular saver acc, I think (not 100% sure) its is £10 a month and is tax free 10% interest! what they don't advertise openly is that anyone can take this out for another child you don't have to be a parent or even a relative, just need to be able to get hold of their birth cert. The only thing is you have to pay in for the full 12months or loose the 10% interest.

hope this helps

$17mma

The Halifax saver for kids is 10% and you can save up to £100 per month tax free :money: I have opened a couple for godson & parents have opened some for my kids.


http://www.halifax.co.uk/savings/childregularsaver.shtml

dragonthief

Thyanks everyone. It looks as iff Halifax may be the way forward!