Saving for my son

pacman2007

My son was born last month. I am planning to start saving for him. But surprised to know today that government has stopped the Children Trust Fund Last year (I know I should read the news) and the new scheme will only be available at end of this year!

What is the best option for me to do now? Does anyone know good saving scheme for the children?

Cheers
Lee

opinions4u

Short term - Northern Rock Little Rock - 3%

A year - Halifax Kids Regular Saver - 6%

Longer term - wait to see what Junior ISAs deliver later this year. Alternative google Alliance Trust or Aberdeen Asset Management.

Loads of cash? See an IFA.

pacman2007

thanks for your quick reply.
Just checked Northern Rock and Halifax. From my understanding, they are not tax free. Am I right?
There are something I don't know understand. If I do it in short term, when the Junior ISA come out, Do I withdraw the cash out of the scheme and move to the ISA? Does that mean the money actually doesn't lock up for my son?

xrjtg

pacman2007 wrote: »

thanks for your quick reply.
Just checked Northern Rock and Halifax. From my understanding, they are not tax free. Am I right?

Your son has the same tax allowances as anyone else, so unless he earns more than £7000ish each year he's eligible to receive interest tax free. Fill in an R85 form when you open the account to make sure that this happens.

When income from the savings reaches £100 a year the tax position changes, and it starts to be treated as part of your income, but hopefully the Junior ISA, whatever it turns out to be, will help avoid that.

pacman2007 wrote: »

There are something I don't know understand. If I do it in short term, when the Junior ISA come out, Do I withdraw the cash out of the scheme and move to the ISA? Does that mean the money actually doesn't lock up for my son?

We don't know how the Junior ISAs will work yet. The accounts suggested above won't lock up your money for any fixed length of time (although there are advantages to keeping up with the regular saver).

pacman2007

Thank you very much! Very useful!

Debbie.ht68

Hi,
The best deal that I have found is the First Direct Regular Saver. Pays 8%. It's in my name so ir's taxed but even so it beats anything I can get in my children's names. Apart from that I have opened Northern Rock Little Rock Savings accounts for each of my children. Not a bad rate considering how flexible the account is. However, I am watching NR like a hawk: rates can be "revised" at any time.

Debbie

pacman2007

Debbie.ht68 wrote: »

Hi,
The best deal that I have found is the First Direct Regular Saver. Pays 8%. It's in my name so ir's taxed but even so it beats anything I can get in my children's names. Apart from that I have opened Northern Rock Little Rock Savings accounts for each of my children. Not a bad rate considering how flexible the account is. However, I am watching NR like a hawk: rates can be "revised" at any time.

Debbie

Thanks Debbie. First Direct Regular Saver is a good deal! I don't have a lot money but I am thinking to save at least all the Children Benefit to him. I think it's a very good option before the Junior ISA come out.