Saving account for my young child

Moneyproblems111

I want to start setting up a saving account for my child,

what would be the best account to do this with my child is 2years old

i have heard of trust fund or young savings account are these any good or are all young saving accounts the same?

thanks

opinions4u

They are not all the same.

Easy access type accounts where you can pay in and withdraw - Northern Rock and Lloyds TSB Pay 3% interest.

Fixed term accounts up to 5 years which allow no withdrawals. Halifax and Northern Rock lead the way.

Kids Regular Saver from Halifax pays 6% interest on up to £100 a month. Access after a year.

Junior ISA from Halifax paying 6% if you have ash ISA of your own with them. No access until the child is 18. Not available to those with Child Trust Funds.

Xylophone will be along later to post links to other helpful options. Bare trust investments in to stocks and shares may give a better return in the long run.

Moneyproblems111

Thank you for the reply

I am not sure how much i would put in a month but maybe around £30-£50 a month for now

but after Xmas will try to put it up to £100 a month

ses6jwg

Halifax regular saver is a good start

xylophone

Be careful about the "£100 rule" if you are saving for your child outside tax privileged accounts like the CTF.

See http://www.hmrc.gov.uk/tdsi/children.htm

Your child was born before 2 Jan 2011 so is not eligible for the JISA- however he can have a CTF. See http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ChildBenefitandChildTrustFund/ChildTrustFund/index.htm

Presumably your child had a CTF voucher? Or did HMRC set up an account for your child? http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ChildBenefitandChildTrustFund/ChildTrustFund/WhentheChildTrustFundisupandrunning/DG_193644

The interest rate on the cash CTF is not brilliant http://www.moneysavingexpert.com/savings/child-trust-fund-vouchers- you might want to consider the stocks and shares option.
http://www.share.com/a/child-trust-funds-which-ctf-is-best.html
http://www.which.co.uk/money/savings-and-investments/reviews-ns/child-trust-funds/

atush

Personally for a child that young i'd not be saving in cash. Open a cash acct for xmas and B'day monies and pocket money when older.

I'd invest the bulk into a Jisa in Equities or an investment trust savings plan. I did this for my twins when they were that age, and now it is paying for uni living costs. It really grows over time (ie 16 years will grow far larger than cash).

They also had a cash savings acct that I just turned into a checking acct for them so they now have the debit card int heir hot little hands. Her's hoping there will be some left come start of term in Oct lol.