Help with children's savings

weekatiepea

Hi

I would like some advice if possible on how best to save for my children:

- O is 2.5 years, he has a child trust fund with family investments. We opened a halifax regular saver account for him 2 years ago as both us and his grandparents wanted to put money aside each month. At the end of the first year the money was transferred into a save4it account. At the end of this 2nd year the regular saver account has been changed to a young saver. I could open a new regular saver but living in Aberdeen we now don't have any Halifax branches at which to do it. So I am thinking of taking all the money from the save4it and young saver accounts and putting it somewhere else but I somewhere to save money regularly too. What is/are the best option(s)?

- E is 7 weeks so is entitled to a JISA. Would one of these be the best place to save money to regularly?

Ideally I would prefer accounts that can be set up and managed online.

If anyone can help I would be very grateful. Thanks

cjjhbn

my sone is 3 weeks old and what i did was set up jisa with nationwide andayound saver account with loyds both can have payments in online i believe

xylophone

First read this http://www.hmrc.gov.uk/tdsi/children.htm - the "£100 rule" does not apply to CTF/JISA.
http://www.direct.gov.uk/en/moneytaxandbenefits/managingmoney/planningyourpersonalfinances/dg_10013916
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/SavingsAndInvestments/ISAsandJuniorISAs/DG_199672

http://www.moneywise.co.uk/investing/investment-trusts/benefit-the-new-junior-isas-investment-trusts
http://www.comparejuniorisa.com/Compare/?gclid=CKPD6rS92LACFW1ItAod2wJZ2w#.T997z478Fms
http://www.hl.co.uk/investment-services/junior-isa

atush

I would save monthly into equity accounts for both. In a JISA for the one, or for both into Investment trust savings plans.

weekatiepea

Thanks for the links xylophone, useful reading. Atush, you may as well have been speaking in double dutch but after some googling I think I understand your post now!

The Jump Junior Isa and the Jump Savings Plan both invest with the Witan investment trust and look like good options. Would you agree? Is there a benefit to opening a Jisa instead of a savings plan for child#2?

xylophone

Is there a benefit to opening a Jisa instead of a savings plan for child#2?

See links in previous post.

atush

Witan is OK, but they now charge 30 a year (instead of charging for sales, and for monthly investments). If you invest 25 quid a month, you are only looking at 15 quid in costs under the old system so it is more now and will eat into performance for low contributions. So may not be worth the charges unless you are putting in say 50/month.

So, look at charges for the Jisas, and for the in house savings plans from the provider.

And yes, look at the sticky, as they Jisa has some tax advantages, but given children don't often pay tax, and they get a CGT exemption you may not need that wrapper?

xylophone

Jisa has some tax advantages, but given children don't often pay tax, and they get a CGT exemption you may not need that wrapper?

http://www.direct.gov.uk/en/moneytaxandbenefits/managingmoney/planningyourpersonalfinances/dg_10013916
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/Trusts/Typesoftrustandtaximplications/DG_191735