Saving for university in the future. Where?

mitnotlob

Hi
I want to start saving for when my son goes to university (if he wants to). I've got 14 years to go but can't save a lot each month. Do any of the banks/building societies have "college funds"? What's the best bet for long-term, fairly low amount (maybe £20-30 a month) savings?
Any advice welcome.
Thanks

Debbie_A_3

mitnotlob wrote: »

Hi
I want to start saving for when my son goes to university (if he wants to). I've got 14 years to go but can't save a lot each month. Do any of the banks/building societies have "college funds"? What's the best bet for long-term, fairly low amount (maybe £20-30 a month) savings?
Any advice welcome.
Thanks

Hi! Your son is very lucky to have a parent saving for him in this way. The amounts may be small but it will be more than many of his peers will have in 14 years time. Personally, I would put it in an equity-based product (Maybe an investment trust such as Witan: type "Witan Jump" into google. But be warned, I am not a financial advisor). You could leave it in cash but over 14 years, the likelihood is that it will not keep up with inflation.

Debbie

ViolaLass

I see Witan's charges are 1% and a minimum of £1.25, which on their minimum £25 a month investment is 5% - not a great deal in my eyes.

OP, I would go for a regular saver cash account, you could get 8% with First Direct, for example, and you would not risk your fairly small monthly amount being eaten up in charges.

Reaper

If those are Wittan's charges they do sound high. For my son I used an Investment Trust with Baille Gifford.

There are no direct charges even on £25pm. Of course there are the usual ones for buying shares:
0.5% stamp duty
Bid/offer spread
Plus fund charges, but these are very low on their Scottish Mortgage
fund where I opted to place most of his money.

Over the long term I would hope it will do better than savings accounts - it certainly has in the short time it has been running.

However if you are uncomfortable with the stock market you can indeed go for regular savers like First Direct, just be aware they only last a year so you will have to redirect the money each year.

atush

I would go for an investment trust savings plan. One with low charges, and good record in rising and falling markets )ie not too far south of the market). Look at a major one such ar Alliance, F & C, invesco perpetual etc. Then if you have more money per month, a regualr savings plan at the best rate you can find.

Do a mix of things, but when i started doing this over decade ago i didn't have as much choice as there is today, so opened one with the Witan for 25 quid per quarter. And despite the charges I did well, and no one else could offer me that for under 10 quid per month (although I did increase it over time).