Best way to save for your child?!

blondie1469

Hi all,

I have a 3 month old and am wanting to put a little each month away for him. I was sent some information through Emma's diary about the Scottish Friendly Child Investment Plan where by you put in up to £25 a month over 10 years. I have been onto the website but really have no idea what the benefits/disadvantages of this way of savings is. It does say if I want to cash in before the 10 years is up then I might not get as much back as what I'm paid in (not that I would probably want to cash in anyway).

What are the best ways to save for the future of our little ones? I was only thinking of £20 a month (which would fit in with the Scottish Friendly plan). He is also likely to get money for Christmas and birthdays in the future so what is the best way to save that money also?

Many thanks in advance!
Blondie1469

xylophone

Presumably he is eligible for the Junior Isa - this might be a better option?
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/SavingsAndInvestments/ISAsandJuniorISAs/DG_199672
http://www.juniorisaproviders.org/
http://www.moneywise.co.uk/news/2012-02-14/halifax-launches-junior-isa-paying-6

http://www.halifax.co.uk/savings/interest-rates/personal-rates/#junior-cash-isa

atush

I would save into equities over a period of more than 8 years.

I would save into a JISA, or into an investment trust savings plan.

*Ro*

Hi blondie

I have a 3 month old bubba too

I have stayed away from the scottish friendly type plans not guaranteed returns, things like that used to be good but I'd rather not take the risk.

There are some good regular savings for children
Granny has done the kids regular saver 6% gross! Had to open in branch
http://www.halifax.co.uk/savings/accounts/branch-accounts/#kidsregularsaver

http://www.principality.co.uk/en/Savings-Accounts/Childrens-Savings-Accounts.aspx
The above is 4.5% Plus free money box can be done by post

Hth

xylophone

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/PlanningYourPersonalFinances/DG_10013916
Junior Isa is not subject to "£100 rule".

atush

Cash at 6% is OK. but over long periods equities are better.

jimjames

Personally I would avoid these friendly society "tax free" savings plans as they are very expensive charges/poor performance, very inflexible both in terms of amount, term and starting/stopping payments. For most people the tax free status is a complete irrelevance as the basic rate taxpayers have no further tax to pay on investments anyway.

I use an investment trust savings scheme which is low cost and very flexible so you can start, stop or increase payments at any time. The ones we use are Aberdeen and F&C

http://www.fandc.com/new/it/Default.aspx?id=78401
http://www.invtrusts.co.uk/aam.nsf/InvestmentTrusts/investchildren

acl2009

Our first baby is due in 6 weeks and once he/she is here I'm planning on opening a junior isa. I will put the £20 per week CHB money, and any extra to max it out each year, into that but will also be opening a children's instant access savings account which we plan to build up to £5000 as a fund for as and when we need things e.g. Next size up car seat etc...

xylophone

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/PlanningYourPersonalFinances/DG_10013916

Be careful of the "£100 rule" for money you give to your child outside the JISA.