Two scenarios: which accounts?

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I have recently become an uncle, and am about to become a dad. :)

I need some advice on an idea I have - I apologise in advance if my understanding of things is wrong... here goes...

When I was young, my gran told me a story of how she put £100ish in a bank account for me that I was never allowed to touch, until I was 18. Being 5, I forgot all about it until I was 19 and desperately needed money to pay my flat for uni - and then found an account with little over £1000 in it.

I like the idea of doing this for my nephew - and eventually, for my daughter - but am not sure what I'm looking for, exactly. I've broken it down below:

- For Nephew
One deposit (£50-100), which should then sit for a number of years accruing interest until 18.

- For Daughter
One or multiple deposits (initial £50, then potentially small amounts throughout the year?), which should sit accruing interest until 18.

What accounts should I look at, and how much money will they be able to withdraw at age 18?

Thanks!
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  • Pollycat
    Pollycat Posts: 34,741 Forumite
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    edited 24 September 2016 at 8:41AM
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    This is a question probably better asked on the Savings board (nearer the top).
    But are you sure you're remembering correctly?
    £100 invested for 19 years, even at 10℅ wouldn't reach £1000.
  • chrestomanci
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    Pollycat wrote: »
    Thus us a question probably better asked on the Savings board (nearer the top).
    But are you sure you're reming correctly?
    £100 invested for 19 years, even at 10℅ wouldn't reach £1000.

    I'll re-post there, thanks.

    Maybe she started out with a bit more? I can't remember and don't have the documentation! It's not so much the jump of money, but the idea of the investment that I like.
  • lincroft1710
    lincroft1710 Posts: 17,703 Forumite
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    Pollycat wrote: »
    But are you sure you're reming correctly?
    £100 invested for 19 years, even at 10℅ wouldn't reach £1000.

    Unless gran added to the original investment over the years
    If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales
  • chrestomanci
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    Unless gran added to the original investment over the years

    I'm pretty sure it was a once-off. Maybe it was more than £100!
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
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    It might've done - it depends which 19 years.

    Interest rates were high in, say, the mid-late 90s. Compound interest, in the right account, could be that.

    Also, the OP could've rounded up the £1k, it might've been £894.56, which is as near as d4mmit for a forum post.
  • chrestomanci
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    It might've done - it depends which 19 years.

    Interest rates were high in, say, the mid-late 90s. Compound interest, in the right account, could be that.

    Also, the OP could've rounded up the £1k, it might've been £894.56, which is as near as d4mmit for a forum post.

    That's exactly when it was - from 1987 until 2006 :) I guess there's nothing comparable nowadays? Everything I see is high rates for 12 months only, or requires constant deposits - not quite the 'put money aside and forget about it' thing I've been dreaming about!
  • Sea_Shell
    Sea_Shell Posts: 9,494 Forumite
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    Also, i don't think you're able to open an account as an Uncle (or Aunt), which is a shame as we have a few nieces / nephews.
    How's it going, AKA, Nutwatch? - 12 month spends to date = 2.38% of current retirement "pot" (as at end April 2024)
  • onlyroz
    onlyroz Posts: 17,661 Forumite
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    Sea_Shell wrote: »
    Also, i don't think you're able to open an account as an Uncle (or Aunt), which is a shame as we have a few nieces / nephews.
    Anyone can open an account for a child if they have a copy of the birth certificate.
  • suejb2
    suejb2 Posts: 1,918 Forumite
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    Look into opening a Junior I.S.A for each of them.
    Life is like a bath, the longer you are in it the more wrinkly you become.
  • Kynthia
    Kynthia Posts: 5,668 Forumite
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    I wonder how much you'd need to deposit now to be the equivalent of £100 in 1987?

    Unfortunately nowadays accounts are treated as dormant if untouched after a while and then earn little if any interest.
    Don't listen to me, I'm no expert!
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