Kids savings - another question!

tinkerbelluk

Hi,

I'm after a bit of help and advice on the best way to maximise the interest on our childrens savings. Recently we've started investing in our works share plan for them (so ongoing savings being taken care of) but I'm after the best way to maximise any interest on the savings we've already got for them if that makes sense. I don't like the idea of signing them up for Junior ISAs as I want to retain control of the money.

Currently savings stand at: Child 1 - £3600, Child 2 - £2172 (both have had the same fixed amount put in since they were born and we plan to continue until they are 18). Currently the money is sat in premium bonds but obviously not doing much there!

I was thinking of setting up 2 regular savers with FD with Child 1 having £300 paid in per month for the 12 months and Child 2 £300 p.m. for 7 months then £14.40 p.m for 5mths.

So (finally!) on to my questions, is this the best account?, what would be the best was of drip feeding the money in and from where?

Any help / advice would be great

Reaper

The MSE kids savings article is a good place to start if you have not already had a read:
http://www.moneysavingexpert.com/savings/child-savings-tax-free

If you are not making use of Junior ISAs beware the £100 interest rule for money donated by parents (mentioned on the same MSE page).

jimjames

If you are already happy with the concept of share based investments then I'd look at that rather than cash if you have no need to use cash until they are 18 (assuming that is some time away)

Or use a cash ISA in your own name which will cover the amounts you mentioned.

atush

Any cash savings for the children (in excess of your investments as above) could be kept in a Jisa and in your control until they are 18. This could be birthday and exams money etc.


And could be used by them for spending money when they are 18+(and hopefully in further education etc)