Savings for Grandchildren

Samsaragirl

My beautiful grandson is 1 next month, and am looking at what to buy him for his 1st birthday.

Decided what to buy, about 30quid, but also want to start saving for when he needs his first car etc.

Have no clue how to start so that a small contribution each month will accrue (on benefits myself, but see this changing eventually).

Also, son's partner already has a 4 yr old (she still only 20) who's father 'does not want to know'. R calls me Grandma, which is now seeming normal, so, if I set up a savings accoungt for him as well, how do I protect that IYKWIM?

xylophone

You could open a "bare trust" account for each grandchild.
http://www.hmrc.gov.uk/tdsi/children.htm
As you are on benefits, be careful that you cannot be suspected of reducing your capital to retain benefits.
http://www.moneysavingexpert.com/savings/child-savings-tax-free?utm_source=forum&utm_medium=clicks&utm_campaign=resourcebar

jennifernil

If you can afford to put away at least £10 per month, then the Halifax Kids Regular saver pays 6% at present. You pay in by standing order and can vary it at will between £10 and £100 monthly, you can now miss a month, but you cannot "make up" for that month later by depositing over £100 in another month.

Parents could open a Junior ISA, money cannot be withdrawn from that till the child is 16. Halifax pays 6% if the parent also has a Halifax ISA I believe. You could pay into the ISA once open.

Otherwise, there are ordinary savings accounts that pay 3%, the rates on children's accounts are poor.

Some "adult accounts" are also open to children, once you have a small lump sum, you could open a fixed rate, fixed term account with it if the interest rate is good.

Investments are generally better in the long term, I am about to look into that for our 2, but may need a higher monthly contribution, or a lump sum. Some firms offer plans specifically for children.