Best savings account for a child

geordie_ben

I've got about £3000 to put away for my little girl, she's 1 at the end of the month.

Any suggestions on the best place to put it? I was toying with the idea of putting £2k into a 123 Mini account with Santander which will pay 3% and then putting the £1k somewhere else... not sure where tho?

In July she'll have another £1200 to go in as well

It can be locked away as it's for her when she's older

Why are kids rates so shocking?!

Mattygroves2

If it really is for the longer term then a Junior Stocks and Shares ISA will give her the best chance of beating inflation over the 17 years until she is 18.

You've got to be happy with the fact that the capital isn't 100% secure though and not get spooked when the market falls badly (as it is likely to do over that time period).

Jackie132

You should save your money in the bank in what you are going to save for your little fairy. It had better going somewhere else.

geordie_ben

Jackie132 wrote: »

You should save your money in the bank in what you are going to save for your little fairy. It had better going somewhere else.

Say that again?!

westy22

You could put the lump sum into an account earning reasonable interest such as the Mini 123 but then drip-feed £100 per month from that lump back into a Kids Regular Saver such as the Halifax one which I think pays 6%.

jimjames

Long term it would make sense to invest this money not leave it in a bank account where it will lose money from inflation.

Junior ISAs are one option but the child has automatic control at 18. If you prefer something under your own control then you can use your own S&S ISA allowance or setup a child investment plan

http://www.invtrusts.co.uk/aam.nsf/InvestmentTrusts/investchildren

http://www.fandc.com/uk/private-investors/savings-plans/savings-plans-range/childrens-investment-plan/

geordie_ben

westy22 wrote: »

You could put the lump sum into an account earning reasonable interest such as the Mini 123 but then drip-feed £100 per month from that lump back into a Kids Regular Saver such as the Halifax one which I think pays 6%.

It'd get more leaving it in the 123 account.

Approx £59 in the 123, or £39 in the Halifax

geordie_ben

jimjames wrote: »

Long term it would make sense to invest this money not leave it in a bank account where it will lose money from inflation.

Junior ISAs are one option but the child has automatic control at 18. If you prefer something under your own control then you can use your own S&S ISA allowance or setup a child investment plan

http://www.invtrusts.co.uk/aam.nsf/InvestmentTrusts/investchildren

http://www.fandc.com/uk/private-investors/savings-plans/savings-plans-range/childrens-investment-plan/

I defs want control over when she will get the money. Shares are scary tho! haha

xylophone

Does this money actually belong to the child (already gifted) or is it simply your money that you wish to give to her?

geordie_ben

It's her benefit money plus money I'm giving her as well

Mattygroves2

Then don't forget that when the interest gets above £100 a year then you'll be taxed on it as your income even if the account is in her name.

With the amounts you are talking about it won't be long before you get to more than £100 a year. An ISA in her name would get round this but would give her control at 18.

If you really want to stop her having control then you'll need to keep it in your name and be taxed on it (unless it's in an ISA in your name).