Child's savings account with parental control!

quidsout

We would like to start a savings account for our daughter with option of saving money regularly and as lump sums (e.g. if she is gifted any money).

The main problem we have is that with most accounts the money will fall into her control when she turns 18y. She is currently only 8 months old so there could be a substantial sum saved by that time!

The money will be for her only, however, 18y is still very young and we would like to retain partial/full control of that money so we can guide her expenditure e.g. use it as a deposit on a property, invest it for the future etc, rather than donate it to her favourite cult(!) or something of that ilk.

Also, are there savings accounts that we can have mature at different stages e.g at 18y to pay for further education; 21 years for property etc?

Thanks!

atush

You could save into cash for now, and cross that bridge later. But also you can start now saving into an investment trust savings plan. in your name, but with your child as the designee. I have one for each of my boys who are 17-20 and they still don't have access. In fact, I only just told them about it lol.

Tnhey eqach still have cash savings accts with a fewK in them. Again in my name and theirs. When they turned 13 and could operate them themselves, I just didn't bother to fill in the forms and my name is still on them. As long as they don't have a debit/cash card I find they leave it alone and it will be freed up for them when the go off to Uni. With my eldest we just turned it into a current acct a fw months before he left for Uni and then he had a card.

quidsout

Sounds ideal!

Are there fees linked with these types of plans? And will the funds be taxed as if it were in our names or in our daughter's name?

atush

There are small fees for buying, and selling but lower than brokers. We are talking pence mainly.

I don't declare the income as it is theirs and have yet to make a w/d. But a w/d would involve capitol gain in our case as we have helod for so long. But each person has a CG exemption of 10K per year so don't think it will arise. Technically if only you contribute they can only have income of 100 per year tax free, but if you are putting in from gifts from others as well, the income isn't just from parents contribs.

For research try Motely Fool and Trustnet. I invest in Witan for my boys, but invesco and F&C for ourselves. Each has a diff min montly contrib (w-25, IP- 20, F&C-50). Invesco and F&C have lots of different trusts from generals to emerging markets, income etc.