Savings for children

Itsadogslife_2

When I was younger, my parents had a Britannic policy for me and my brother (it was in the days when a man came to the door and collected money and marked the book), it gave an amount of life insurance I believe and when the policy matured when I was 18 or so, I was given a lump sum back - do they do these types of policies these days (not ones where someone knocks the door....)?

I think a friend of mine has a children's mutual policy that is similar, she pays £25.00 per month, on maturity she gets a lump sum back for her child with an element of life insurance. I have been on their website, but it only seems to offer child trust funds or basic savings.

I am probably at the moment only looking to save £20.00 to £25.00 per month.

cloud_dog

Why do you want the element of 'life assurance' on the child, or do you feel this type of 'investment' as opposed to 'savings' is the right way to go?

Your friend may just have an investment plan with Children's Mutual, (investing £25 per month), or a CTF, or a newer JISA as opposed to an older style life assurance 'endowment' policy.

atush

Try an investment trust savings plan. Some like Invesco perpetual take as little as 20 per month, and some like Witan take 25.

But look at charges. Witan recently changed the way they charge and charge a flat feeof 30 per year instead of monthly buying charges and cash in charges. So smaller investments of less than 50 per month can be more expensive using the new system.

Itsadogslife_2

I don't necessarily want life insurance, I just remember it being part of the old Britannnic endowment type policy. The projections (which I know are only projections) are that he would get quite a good return for his son when his son reaches maturity - it seems far better than a savings plan with minimal interest at present.

cloud_dog

Itsadogslife wrote: »

I don't necessarily want life insurance, I just remember it being part of the old Britannnic endowment type policy. The projections (which I know are only projections) are that he would get quite a good return for his son when his son reaches maturity - it seems far better than a savings plan with minimal interest at present.

Many years ago there were far less options around investing (as opposed to saving) for a child and the more standard endowment policy probably was king.

The reason I asked the question is because obviously whilst an endowment provides a return, some of the premium will go to covering the cost of the assured.

A lot of people like Investment Trust savings schemes, as atush mentions. Another regular poster, Reaper, has previously carried out a review for a child investment option inside and outside (<--click on the link) of CTF/JISA.

You don't mention the age of the child or if a CTF or JISA is applicable?

xylophone

If a parent is giving money to a child outside tax privileged accounts
http://www.hmrc.gov.uk/tdsi/children.htmaccounts

Does the child have/is he eligible for CTF/JISA?
https://www.gov.uk/child-trust-funds/overview