Saving for Child

IanBroadhurst

Hiya

I need some advice on savings for my daughters future.

I have a child trust fund, we paid in the voucher and put an additional £100 in on her birthday and xmas as annual bonus. The plan is when she turns 16 - this is the money that she is given, any other money will be buried for later life when she probably needs it more and can spend it wisely.

We save £100 a month in a Halifax 10% regular saver which sweeps the money into a save for it account at the end of the year. My dad has asked us to set him up an account as well and his account will also deposit into her save for it account at the end of the savings period. The problem is the save for it account has a max limit of £5k and also the interest earnt is not too hot.

As she is nearly 2 the balance is getting quite big and we want to sweep the money in 3k intervals out of her save for it account into a more long term savings plan which offers her a good return. In addition we don't neccessarily want the money to become instantly available the moment she turns 16.

We don't want to be stung for tax, whilst we know that any money given as gift from other family members is tax free - it will be in a pot with money we have saved as well. The audit trail to prove where the money has come from could get complicated.

Any ideas of a good, stable long term solution for our daughter?

Any help gratefully received

Ian.

wombat42_2

I have sent you a private message.