Best savings account for aby

pink_phantom

Hi, just after some recommendations really. I want to start a long term savings account for my newborn of about twenty pound a month but I can't seem to any recommendations on this site for children's accounts. I have no lump sum to invest so an isa is out. Any advice appreciated.xx

:money:

atush

You can make regualr savings into many types if accts, incl ISAs, Halifax children's reg saver, and best of all investment trust savings plans (invesco pepetual ones start at 20).

Long term savings for small children (ie over 10 years) should not be in cash but in equities as they will always out perform cash over long periods. But a small cash savings acct along side is a great idea. One that they can ut xmas and Bday money in etc.

opinions4u

Halifax Kids Regular Saver pays 6% for a year. At the end of the year you can then decide what to do with the money and, perhaps, open another Kids Regular Saver.

Halifax Junior ISA pays 6% (if you have an ISA, which you can open with as little as £1). These funds are locked away until the child is 18. If the rate becmes uncompetitive you can switch to another provider.

Northern Rock and Lloyds TSB offer a rate of 3% for an easy access kids accounts. C&G, Halifax and BoS 2%.

xylophone

http://www.hmrc.gov.uk/tdsi/children.htm
Might be better to use the JISA as you are a parent saving for a child.http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/SavingsAndInvestments/ISAsandJuniorISAs/DG_199672
How the Junior ISA works
There are two types of Junior ISA:
a cash Junior ISA
a stocks and shares Junior ISA
Your child can have one or both types of Junior ISA at any one time.
There is no tax to pay on the income or any gains (profits) a Junior ISA makes."
In view of the long time scale, you could look at a stocks and shares JISA?
http://www.myeggnest.com/

pink_phantom

Thanks for taking the time to reply. Ive gone for nationwide junior isa as it came top for best online. I mistakenly thought you had to have a lum sum to have an isa so thanks for clearing it up.xx