Long term savings over 18 years

lorrenna

Hi. As I am now a proud auntie, and as such I am wanting to start a long term savings plan, say at £10 per month for my niece. I aim for it to run over 18 years, and let her have the lump sum for her 18th birthday present. Can anyone advise on any such plans that are worthwhile?

greenface

congratulations . Look at the Halifax and pop their highest child avings (make ure you fill in the tax exempt forms) and drop it into the high saver every year . A little faff but its always a decent rate within the same gaff ..

bigadaj

That's a long time period, and equities would be expected to outperform cash in virtually all time periods. £10 per month is probably a little low but some of the investment trusts accept relatively small contributions.

xylophone

If the child has a JISA you could contribute https://www.gov.uk/junior-individual-savings-accounts/overview

Otherwise you and a parent could be bare trustees on a child savings account.

Or you might consider regular saving into a stock market based product - note the difference between bare trust and mere designation - this is well explained on the SIT site http://www.sit.co.uk/products/investing_for_children/features/questions_and_answers/

http://www.mandg.co.uk/-/media/Literature/UK/End%20Investor/Guides%20and%20Brochures/MandG-Give-Your-Child-A-Headstart.pdf M&G accept as little as £10 a month.

Totton

The quarterly magazine 'Investment Trusts' carries a regular update on all the available IT Savings plans. I have a thought that there may be one or two for £10 per month but most start around £20-£25. These often have low cost fees but of course you do get caught for the stamp duty element. Nevertheless, I'd opt for an IT Savings Plan or an OEIC one, for example M&G have one starting at £10 http://www.mandg.co.uk/investor/your-investment-choices/choose-your-investment/regular-savings/

HTH,
Mickey

atush

I would go with equities not cash over a period of that long (and actually have for my 3 and a godson).

In JISA if the parents open one, and if you must stick with 10/m. If you can rise to 20, i'd go with an investment trust savings plan.

kidmugsy

lorrenna wrote: »

Hi. As I am now a proud auntie, and as such I am wanting to start a long term savings plan, say at £10 per month for my niece. I aim for it to run over 18 years, and let her have the lump sum for her 18th birthday present. Can anyone advise on any such plans that are worthwhile?

Scroll down to p44 of this link.
http://www.theaic.co.uk/sites/default/files/statistics/attachment/AICStats30Nov2013.pdf

My eye is taken by Caledonia Investment Trust, which has a minimum of £10 p.m. - it's on my own list of possible investments for when our Cash ISAs start maturing. I also note that Troy has no minimum: they seem to be a good "house", and the lack of a minimum might be handy if you ever need to reduce the £10.