First Bank Account

pingu97

Hi all, I apologise if this has been asked before, I am trying to set up a new savings account for my baby daughter. I was looking at Halifax which seems quite good however I thought I would throw it open to all you money savers to see if you have any good advice. Thanks in Advance

Pingu97

macchicken

i think Boots sell baby bonds. You can find them with the travel insurance, that might work out better for your little one.

16011996

abbey national do them too, we have our kids ones with them.

margaretclare

Try this:

http://www.ybs.co.uk/savings/saving_needs/children.jsp

Best wishes

Margaret

jo_b_2

Alliance and Leicester offer the highest interest rate at the minute for children's savings accounts. This is their First-Save Account.

KK

My daughter is 4 and we have various savings accounts. We have National Savings Children's Bonds (post office) which are good for a lump sum (I think they mature when she is 18 or 21 and are about £500 from her great granny before she died), a Nationwide Smart to Save account for little bits of money (with a pass book which was important to me), and Friendly Society account my mum pays £10 per month into and we pay £30 per month into an Invesco Index Tracking account. These were all advised at the time as the best accounts. We pay half our family allowance into the Invesco Account and it is growing slowly.

It depends what you want to save the money for. For us the Children's Bond and the Invesco are long term saving (e.g. until at least 18) and the Friendly Society one probably the same. The Nationwide one is a pocket money one (although it already has £400 in it!) and that is her money to spend (although I haven't told her this as it would go on Barbie junk and sweets at the moment!). The Invesco one we jokingly call her University Fund, but it may not be such a joke when the time comes, we also save £50 per month into another index tracking ISA which is also a University Fund/paying off our mortgage early fund, depending on our finances in 14 years time (e.g. if we have paid off the mortgage or not). If anyone else has any bright ideas for us I'd welcome them, but we don't have much money to spare.

rach

i've been looking at this too, as i'd like to save a few pounds a month for my 10 month old Godson, to try and help when he reaches uni age! the scarborough building society one looks the best interest rate at the moment - 5.75%, but i think is only a 3 year one, though i guess there will be a replacement option after that! have a look here for more info.

I would like to make sure i invest ethically for him, so may use either the co-ops account or the triodos children's saver which also seem ok.

rach

there are also quite a few threads on this subject on the savings and investments board

Robert_Sterling_3

If you set up a savings account for your child then the interest on the account is taxed as if it were your own money subject to the fact that where the total interest in any financial year does not exceed £100 then the interest is tax free.

If anyone other than the parents gives the child money then interest on that money is taxed as if it was the child's money.

Each child has it's own tax allowances which are the same as anyone else's tax allowances.

rach

does that mean i would have to talk to my Godson's parents about saving for him? i would like to just do it on the quiet really!