Best Savings Accounts For Children

jonzey_2

Hi I want to open a couple of long term savings accounts for my grandchildren would anyone have any ideas of the best interest rates etc.
Many thanks in anticipation.

dipsomaniac

if they have a child trust fund you can contribute to that - max £1,200 per annum

maple41

Open a Halifax regular saver (min £10 a month) in your name in trust for each grandchild - pays 10% can't be beaten until they are 16. See this link as well
http://forums.moneysavingexpert.com/showthread.html?t=538737

[Deleted User]

Depending on where the cash has come from I have (at the mo)...

National Savings Childrens Bonus Bonds - funded by grandparents gifts
Halifax Save4IT - funded by Parents
Halifax Childrens Regular Saver - funded by Parents
Skipton BS Cash CTF - funded by £250 voucher

Cheers

Jake'sGran

I have been putting money away for a long time for my grandsons but now I wish I had used an equity fund since they were small. Every Christmas I bought Children's Bonds from the Post Office but they became very uncompetitive. I then cashed those in and put the money into the Alliance Trust Investment Trust which is old and well regarded. Investment trusts are cheaper to buy than Funds/unit Trusts. Some fund managements allow quite small monthly amounts, £20-40. If you pick a good one and the children are very young hey should have a nice sum at, say, age 16 - if you pick a good one of course.

I put £3000 away each year into the best children's bond I can find. At one time I tried to get them interested in the bank accounts I'd set up for them for spending money. They weren't interested then but now it's a different story as one of them is a spender and is always short and the other won't touch it and has accumulated around £500. They both have debit cards allowing them to withdraw £25.

ramborai1987

its gotta be ybs one day account at 6.06%. i tihnk its the best by far and it stays open till the child turns 20

baby_boomer

It's funny how children's accounts seem to have gone out of fashion - except for the CTF cash accounts which is where the hot action is. Four years ago children's accounts were the best paying BS accounts.

Building societies are effectively discriminating against the over 5s and promoting CTFs while neglecting other accounts. I suspect this is because they know that CTFs can attract more parental money because of the government's own tax discrimination against the over 5s ( i.e. parental tax rates payable on £100 interest from parental money).

I now find that the best accounts for my older children are not necessarily children's accounts.

jeepjunkie wrote: »

National Savings Childrens Bonus Bonds - funded by grandparents gifts
Halifax Save4IT - funded by Parents

For tax reasons, it's better for parents to fund any NSCBBs and for grandparents to fund savings accounts if the amount starts to get above £1,500 in savings' accounts.