Saving for school fees

dunsrm

I need to find the best way to make sure i save for my sons school fees!
Long story, but we never planned to send him to a private school and never planned for it.
But, as a self employed/freelance Project Manager, with a wife that generates a small amount of income as a wedding florist from our garage, we need to make sure we are putting money aside at the rate of circa £900 per month. And then at the end of each term, we need to pay the circa £3.5K to the school.
What is the best savings account that we can use to regularly save this amount and make withdrawals 3 times per year?

bowlhead99

You could each open TSB Classic Plus current accounts. They pay 5% from £1 to £2000. Just as they are getting close to being maxed (£1800 in each) you will clear them out and start again.

If your wife has very small income (non taxpayer) have one of the accounts be in her name and one of the accounts be in your joint names.
Then all of one account and half of the other account avoids tax. Presumably you have a larger income and would not want to pay tax at your rate on it.

jackyann

Both Nationwide & Coventry do "limited withdrawal" accounts. That might suit.
I know that you can set up some trust type schemes that allow you to withdraw money for education, but I don't know if it is worth your while.
I may be teaching my grandmother to suck eggs, but don't forget all the "extras" on top of the fees!

xylophone

You might also want to consider a Nationwide Flexdirect account for a year.

Tammer

I have heard that it may be possible for a business owner to set up a "tax efficient" arrangement for paying school fees via a Bare Trust. It may be worth speaking to a financial adviser.