Aunty looks for best way to save money for neice and nephew

PAL1809

Hi

I lost my younger brother last year I would like to set up some kind of savings accounts for his young children, aged 1 & 3.
I need to be able to save a small amount regularly, say £10 a month as well as being able to pay in lump sums from time to time. The childrens mother isnt very good with money so I need the accounts to either be trust accounts in my name or in the the kids name to begin with. My parents also need to be able to deposit lump sums from time to time.
Any ideas?

Mrs_Soup

I know my children have two sets of accounts with Nationwide, one has my name on it with theirs but the other has their grandparents name and the child so the grandparent controls it. I think they had to have my permission or at least the birth certificate in order to open it (and I had to sign the form about being tax exempt for interest) but once that was done I have never seen anything about it. Would your SIL agree to you opening accounts for them on this basis.

PAL1809

Many thanks. I think my sister in law would be OK with this. I'll ask her for the kids birth certificates and see what happens! I already have an account with the Nationwide so will pop in and see them

bowlhead99

If it's an account for buying them toys and sweeties and school uniforms as they're growing up, then building society or bank accounts for the child with you as trustee are just fine.

However if this is a long term "project" to build up a nice pot for them when they leave school or beyond, stock-market based investments (funds that invest in shares of companies) would be the way to go. Otherwise inflation will just eat up all your hard-saved money. Remember how much further £10 would have stretched 15-18 years ago? That's what will happen to each of those tenners you're putting into the bank - even if it earns a bit of interest it would be worth less in real terms.

So, consider looking into "investment trust" plans for children (or for yourself if you don't mind investing in your own name) if the goal is to increase the balance in real terms rather than just have a rainy day fund for each of them.

mgdavid

Junior S&S ISA?
http://www.moneysavingexpert.com/savings/junior-isa

xylophone

Information about the Junior ISA here

https://www.gov.uk/junior-individual-savings-accounts/overview

Nationwide offer a restricted access smart account paying a reasonable rate which could be held in bare trust by you and the grandparents.

http://www.nationwide.co.uk/products/savings/smart-limited-access/rates-and-information

Or investment trust savings plan held in bare trust by you and the grandparents?

Examples http://www.sit.co.uk/products/investing_for_children/features/questions_and_answers/

http://bailliegifford.com/documentgateway.aspx?_id=3A39B056-DE6E-474E-870C-3DB1B9BB88F3&disclaimer=ok

PAL1809

Thanks, It will be long term savings I'm after, Always been wary of investing in companies after not being particulary successful in the past. Will investigate further.