Christening gift for my godson

arsenalchris

Hi, i have been asked to be the god father to my friends son. I would like to open a bank account/saving account for him. I plan to put aside 10pm until he is 21.

I would welcome your suggestions.

Regards

baby_boomer

The Halifax Regular Saver @ 10% is still going - but after one year the capital sum gets transfered over to the Halifax Save4it account which pays a decent rate of interest.

At the moment the Halifax is allowing people to contribute to the 10% account for at least two years but the hassle of setting it up and then perhaps having to change the arrangements after two years may not be what you want. The extra interest earned on just £10 pm for a year is not that significant.

If I were you, I'd open a Yorkshire BS Regular Saver currently which was paying 7% but may now increased recently. This is really good account and very popular amoung contributors to this site. You can then sit back and forget about it. Don't forget to fill in a R85 form to ensure interest is paid tax free.

At 18 the money would be accessible by your godson, so when he's 17 you might consider transfering it to a fixed rate bond that lasts until his 21st birthday, or - to stop him getting at it altogether, a National Savings 5 Year Bond just before his 16th birthday (although the rate on that, albeit tax free, isn't as good as many others.