Where to put child's few hundred pounds?

lindsayg_2

I have just done my first year of saving for my little boy - paying in £30 per month into a 6% Halifax account. At the end of the year they transfer the balance into the Halifax save4it book, which only pays 1%.

I'd like to withdraw the £400 odd pounds and put them somewhere with high interest, and since boy is only 18 months old, it can be locked in for a long while. The 6% account is still running, so ideally I could add to the lump sum next year when the same thing happens.

The only two decent accounts I find are with the Yorkshire and Clydesdale, but both have to be opened in-branch, and I live in Bristol where there aren't any...

Where would expert Money Savers put away small amounts of lump sum, possibly long-term, for a young child?

Thank you!

jimjames

Personally I would (and do) put money monthly into share saving schemes for my kids. There is the risk that shares can drop but over the 18 year timescale that I am looking at this seemed worth taking for the potentially better returns.

I use F&C and Aberdeen for mine (starts at £25pm saving) but you could also use an ISA in your own name with Hargreaves Lansdown instead.

rb10

The Halifax Guaranteed Reserve is available for people of any age. Can be held in trust for a child (or in a child's own name once they can provide a legible signature).

http://www.halifax.co.uk/savings/accounts/longer-term/guaranteed-reserve/

jennifernil

You can pay it straight back into the regular saver at £100 per month, then add your usual contributions.

You can withdraw/transfer the money in the Save4 It at a branch. Put it in your own account and pay it into the RS.

The monthly amount can be altered at will.

jennifernil

Also, Northern Rock seem to have good childrens' accounts right now.