Help re opening 2 accounts

supermaiden

Im looking to open a bank account for my baby to save money up for him when he is older. I havent been to the bank to speak with anyone yet but just wondering if anyone knows of a good account for this. We have a few banks locally so any will do.

Also looking to open an account to save money in for going on holiday next year (hopefully!). Having it in another account would really help as if its lying around I will be more tempted to spend it! Any recommendations would be appreciated

Thanks

Lith

Just open an 'ISA ACCOUNT' in your name on your bank, use that for your baby.

keep it simple and smooth.

CLAPTON

for yourself then open an ISA with the best savings rate (consider Halifax at 3%)

for the baby then it's best to open a savings account in his name in case relatives give you cheques in his name;
bear in mind that if you contribute to his a/c, then any interest of 100 or more pa will be taxed as your income; if only relatives contribute to his a/c them he can enjoy tax free interest up to 7475 per annum ;
make sure you fill out a P85 so the interest is received tax free

whatever you do make sure you review what interest is being received at least once a year as most decent a/cs have 'bonuses' after which the interest rate drops to a very low figure

lindsayg_2

I opened the Halifax Child Saver account for mine. You have to make a regular payment, but it can be small. It gets 6%.

qpop

http://www.moneysavingexpert.com/news/banking/2011/07/government-lays-down-new-regulations-for-junior-isas

I reckon waiting until this is confirmed would be wise.

Also consider that if you're saving money for your child until they're (for example) 18 or 21, it may be worth looking to long term investments, as the money's-worth of (e.g.) £100 now, and RPI at 5%, even in a savings account earning 3% you're making a "real loss" of 2% per year on the cash. Compound this over 18 to 21 years and the money you put into the account now won't be worth very much at all for your child!

The advantage to child isas is that you will be saving in their name, and therefore when they turn 18 you don't need to lose the ISA "wrapper" and if they wish to continue saving/investing the money all of it will be tax free. Sadly you aren't allowed to "transfer" ISAs between different people.

As for holiday savings - if you're with HSBC or First Direct (I'm sure other bank are doing similar) they have year-long regular savers paying 8% p.a. - otherwise just pick Martins savings best-buy off the savings bit of the main site