Children's saving accounts??? or to put in an adult isa?

Tink_04

Hi Im looking to get new saving accounts for my children, they have about £1000 each but the children's accounts I've found are not great - am I better putting there money together and locking it into an adult isa for a better rate? We pay £25 a month in each for them now so not sure what to do with it?

Thanks any help or advise appreciated.

oh my daughter is 5 and had one of those £250 vouchers off the government but my son doesn't - we have never used this to save extra money into and just have a normal savings account for her

xylophone

oh my daughter is 5 and had one of those £250 vouchers off the government

Then she has a CTF (which
should be transferable to the more flexible JISA next tax year).

https://www.gov.uk/child-trust-funds/overview

The above has information on both types of account.

See and read the whole of http://www.moneysavingexpert.com/savings/child-savings-tax-free
and note the information regarding tax and parental gifts outside CTF/JISA.
If the money in question is a gift to each child separately then it should be in an account for each child and neither combined nor invested in your name.

The best available cash JISA is provided by Halifax if the parent also holds an ISA/NISA with them.
http://www.halifax.co.uk/isas/cash-isas/junior-cash-isa/

Re stocks and shares JISA http://www.juniorisas.co.uk/stocks-and-shares-junior-isa might be worth a browse

http://www.telegraph.co.uk/finance/personalfinance/savings/9868588/Junior-Isas-How-to-pick-the-best-saving-plan.html

Kendall80

My children are of a similar age and I too went for a cash CTF. Unfortunately that was a mistake. I shouldve opted for a stocks and shares account instead looking at fund performances since 2009. Hindsight....

Come April, I plan on converting the kids accounts into a S&S JISA then transferring them to charles stanley so i can actively manage them.

That said, if you are determined to stick with cash ISAs from next April then yes fixing a JISA for a longer term would bring a greater return than not fixing.

In the meantime you could open up a high interest current account (5% TSB or nationwide) and put your monthly payments into that. Then you can transfer it into their accounts at your leisure.

planteria

yes, i would go for a JISA, invested in Stocks&Shares.
we also have ChildTESP, which is invested in a fund which holds Stocks&Shares, Bonds, Property & Cash, for our girl.

Al1x

I have the mini 123 accounts for our children. If they have over £300 they get 3% interest.

Archi_Bald

Al1x wrote: »

I have the mini 123 accounts for our children. If they have over £300 they get 3% interest.

Only if you have filled in R85s for them, otherwise they only get 2.4% net.

No interest gets paid above £2,000.

planteria

still a good childrens account though, imo.
i have Marie set up with 4 local building societies, and a Lloyds card account this week, allowing her to withdraw her dinner money each day or so