Long term savings for new baby

JLMS

I am trying to set up a savings account for our new daughter. We would deposit funds a few times a year, with the total amount each year being under £1000 but over £100. The idea is that the money is not accessed until she is 18. Any thoughts on the best deals/interest rates/terms? It was easier with our son as we had the CTF and we went with Yorkshire (though I see the interest rate for that is only 2.3% now).

Many thanks

Jegersmart

Personally over that timescale I would not be putting that into cash - I would go for a mix of Income and Growth funds for a bit of diversity but at least a fighting chance to beat inflation over that period. 25 years ago, if you had given someone a lump sum of £7500 it would have been a very decent deposit on a house. Today I spend that on coffees every year (well maybe slightly exaggerated)........that is the power of inflated money supply for you...

It is not a time to be too coy imho.

Reaper

JLMS wrote: »

It was easier with our son as we had the CTF and we went with Yorkshire (though I see the interest rate for that is only 2.3% now).

That's why I prefer investments over savings. My son's CTF has only been going a year but was up 18% last time I checked. Of course it can go down as well as up but over the long term I am confident it will easily beat a savings account.

Debbie.ht68

Hi!
Over 18 years a stock-market based investment should beat cash. If you have not considered this before then you could take a look at the children's savings scheme offered by Witan (a large investment trust). Just type "Witan Jump" into google and have a read. The minimum investment is £25 per month ... and it is flexible.

Debbie

atush

I agree Iwould invest it.

I opened 3 plans for my 3 sons. I did an investment trust savings plan to drip feed into the market over years. So, if you wanted to invest 1000 over a year, you'd sign up for an itial pmt of 80 quid per month. But some allow pmts as small as 20-25/m. Hae a look at F&C, Alliance trust, Witan, Invesco perpetual. And I wouldn't tell her til she is over 18. I'm not giving access til they are 21 ;-)