Children's Saving Account

TS1974

Hi, I want to set up a regular monthly payment for my niece. It will be for around 8 years for when she turns 18. Can anyone recommend an account/best interest rate? Thanks

enjoyyourshoes

Halifax regular saver 6%

unimaginative_user_name

The Halifax Regular Saver is a good product but you have to bear in mind that it matures after a year and you then have to set up another one for the following year. You also need another account that wouldn't pay such good interest to pay the proceeds of the regular saver into.

If you are looking at 8 years you might want to think about a Junior Stocks and Share ISA or even a Junior Cash ISA which you can just keep contributing to every month for eight years. The Halifax one pays 3% or 4% if a parent also has a Halifax Cash ISA even with just a small amount in it. The choice between S&S and cash is really about your attitude to risk as the return on cash would probably be less that the S&S but you would not risk losing money. I think a parent has to set up the account but anyone can pay into it.

There's also nothing to stop you setting up a Regular Saver now and then transferring the balance at the end of a year into the Junior ISA.

xylophone

Does the child have a CTF/JISA? Ask the parents.

The CTF is now transferable to the more flexible JISA.

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

http://www.moneysupermarket.com/c/news/how-to-transfer-a-ctf-to-a-jisa/0085961/

You could contribute to the CTF/JISA.