Saving for babies future

Jipper

Hi all,

Looking for a bit of advice. We recently had our first child (yay! :j) and are in the process of applying for child benefit. We're in the relatively lucky position that we aren't desperate for it yet, so we'd like to put it aside for our little one's future.

Does anyone have any advice as to the best (most tax / interest efficient) way to do this? We're not worried about quick access as we're not planning on doing anything with it for a good few years yet.

Thanks,

Jipper

xylophone

Have you thought of a JISA?https://www.gov.uk/junior-individual-savings-accounts/overview

The contribution limit will increase to £4000 per annum in July.
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/293798/TIIN_8079_9034_6234_8163_New_ISA_junior_ISA_and_CTF.pdf

Bear in mind that money in this account will belong to the child absolutely and he will have control at 16 and access at 18.

The highest paying cash JISA at the moment is the one provided by Halifax (6% if the adult contact also holds a cash ISA) See http://www.halifax.co.uk/isas/cash-isas/junior-cash-isa/?srnum=1

In view of the long time scale you might also wish to consider a stocks and shares option.

If you give money to your child outside a tax privileged account like JISA, bear in mind the £100 rule.
http://www.which.co.uk/money/tax/guides/tax-and-your-children/children-and-tax/