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Two scenarios: which accounts?

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  • Spendless
    Spendless Posts: 24,206 Forumite
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    My Grandmother opened an account when my sister was born and I was 7. It was an insurance policy with the idea being that if either of us died during childhood, the policy would pay for the funeral. Sounds very :eek: nowadays.

    It matured/ended when my sister was 21 at which point my Granmother split the money between herself, me and my sister.

    Since I had no idea about this money until shortly before I received it I don't know if she contributed over the years or just paid a lump sum at the beginning.

    Amongst people who are older I have heard of similar schemes, and it being relatively commonplace to have such a policy but it's not something I've come across in recent years.

    Might it be possible that this is what your Gran did too?
  • Kynthia
    Kynthia Posts: 5,672 Forumite
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    Spendless wrote: »
    My Grandmother opened an account when my sister was born and I was 7. It was an insurance policy with the idea being that if either of us died during childhood, the policy would pay for the funeral. Sounds very :eek: nowadays.

    It matured/ended when my sister was 21 at which point my Granmother split the money between herself, me and my sister.

    Since I had no idea about this money until shortly before I received it I don't know if she contributed over the years or just paid a lump sum at the beginning.

    Amongst people who are older I have heard of similar schemes, and it being relatively commonplace to have such a policy but it's not something I've come across in recent years.

    Might it be possible that this is what your Gran did too?

    Sounds possibly like an endowment, although I'm not knowledgeable about these things. I think they often had some kind of life insurance attached, were popular in the 80s and early 90s due to high interest rates and goid times, and I think they were invested in shares when returns were unbelievably good. Obviously things have changed since then and now savers get very little, but over someone's whole childhood who knows what will change again.
    Don't listen to me, I'm no expert!
  • itsanne
    itsanne Posts: 4,992 Forumite
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    suejb2 wrote: »
    Look into opening a Junior I.S.A for each of them.

    Only a parent or legal guardian can open a junior ISA. Once open, others can contribute.
    . . .I did not speak out

    Then they came for me
    And there was no one left
    To speak out for me..

    Martin Niemoller
  • Keep_pedalling
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    itsanne wrote: »
    Only a parent or legal guardian can open a junior ISA. Once open, others can contribute.

    A parent can open one with as little as £1, then the OP can add his gift this. Interest rates are so low on Cash ISAs at the moment though that I would not bother. If you want their gift to have a chance to grow then a S&Ss JISA is the way I would go
  • ruis72
    ruis72 Posts: 32 Forumite
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    halifax offers a junior isa that offers 4% interest if you also hold an isa with them ( think min balance has to be £20 for the adult one)
  • Slinky
    Slinky Posts: 10,108 Forumite
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    What you're looking for sounds like the old 'Man from the Pru' where a life insurance salesman would come to your house monthly to collect insurance premiums. I had one my parents contributed from when I was a child that paid out a few hundred quid when I was 18, but we're talking 1960s to 1980s.
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  • chrestomanci
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    Thanks all. The accounts I find all drop to a silly interest rate after 12 months, so maybe I need to accept that times have changed, and this is no longer a viable idea!
  • Pollycat
    Pollycat Posts: 34,796 Forumite
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    Thanks all. The accounts I find all drop to a silly interest rate after 12 months, so maybe I need to accept that times have changed, and this is no longer a viable idea!
    Pollycat wrote: »
    This is a question probably better asked on the Savings board (nearer the top).
    Did you ask your question on the Savings board?
  • enginesuck
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    Whatever you decide id go for a regular direct debit to the savings account, it doesn't have to be much, as little as a fiver a month adds up, I put 40 a month away and the wife a similar amount, also surplus birthday / Christmas money that the kids receive goes in the account.


    If they get say 100GBP of a grandparent we allow them to spend 60 and save 40


    My wife changes the accounts on a regular basis to make the most of higher (relatively speaking) interest offers out there, both kids 7 & 9 have several thousand pounds already in their accounts. In addition to the Child Trust Funds they received back in the day to which their grandparents contribute to on a regular basis.


    We don't notice the money leaving as we don't have it in the first place and its pretty satisfying they will hopefully have enough to help them start out as young adults. (Money management will be big on the agenda in their late teens !)
  • tyllwyd
    tyllwyd Posts: 5,496 Forumite
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    If you can't find a decent interest rate on a cash ISA you could look at a stocks and shares one - there are higher charges and it's more risky, but if you are talking about money you are happy to put away for a long time in the hope that it builds up to a decent amount, it's worth looking at.
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