Investing for Children

scaredofdebt

I am looking to invest a regular modest sum for our new baby.

It will probably only be around the £20 mark each month, plus gifts.

The aim is to build a useful fund once DS gets to a responsible age, so something like 20 years.

What are my options please? I am not risk averse as long as the risks are not excessive.

enjoyyourshoes

S&S ISA (purchase Investment trust on equity, commodity, bond market, your choice)


Halifax regular saver (I started earlier this year on 6%, think its the same) fill in R38 for tax free


Santander 123 mini in trust (3% upto £2K) fill in R38


If you were inveting £80 per month you could open SIPP , tax relief (govt give you £20 but pension rules apply, 25% tax free lump sum once they hit 55 ! long term burn)

[Deleted User]

I can tell you what we do now and in the past as products change.

In the past...
10% Halifax regular saver
Cash Child Trust Fund
Halifax Children's Bonds

Now...
6% Halifax regular saver £10 min, £100 max pm
NS&I Childrens Bonds, min purchase £25
S&S Junior ISA with Hargreaves Lansdown £25pm min
Aviva Stakeholder Pension £20 gross min

The Halifax regular saver is great for building up lump sums to fund other products.

Hope this helps.

Cheers

atush

Have a look at some good general investment trusts, you can have unwrapped or Jisa with most.

Look at Foreign and Colonial, Witan- but they like HL might start at 25/m. I know invesco perpetual starts at 20 for their investor savings plan so check with them too.

Purplesky_2

I like the children's bonds from the NS&I personally. I have no children, but my Mum got me some when I was younger. They were AMAZING!

They're also a good tool for teaching about compound interest. That meant that when I was first made aware of them at age 16, I had a couple of years at home, figuring out other bits and pieces from the financial world, and has meant that I've ALWAYS saved something, because I understand the power of it now.

edinburgher

Halifax regular saver (I started earlier this year on 6%, think its the same) fill in R38 for tax free

I believe the Halifax JISA @ 4% trumps this, although the money is tied up until they are 18. On the plus side, none of the faffing with finding somewhere else to put the money after the year of 6% for the regular saver is up.