Savings for my daughters future

leebodd

Hi
i want to start putting some money away each month (approx £50-£100) into an account for my daughter (currently 3) so she has a lump sum when she is 18 approx.
Is a junior isa or a bank savings account the best option here?
I want to deposit monthly payments and don't want access until she is older.
Many thanks.

bowlhead99

A JISA was designed for this exact purpose. Over the timescale you're talking about, cash savings will usually be eroded by inflation whereas S&S investment funds inside an ISA or JISA will generally return quite a bit more than inflation.

cloud_dog

leebodd wrote: »

Hi
i want to start putting some money away each month (approx £50-£100) into an account for my daughter (currently 3) so she has a lump sum when she is 18 approx.
Is a junior isa or a bank savings account the best option here?
I want to deposit monthly payments and don't want access until she is older.
Many thanks.

Please ensure you are comfortable with the long term possibilities of your decision, i.e. the money is your daughters, you have no rights or control of this money at age 18.

atush

I would use equities over cash. And I would examine if you want them to have access at age 18 or would you like it to be older.

Do you use your own ISa allowance each year?

xylophone

https://www.gov.uk/junior-individual-savings-accounts/overview

You may use cash option/stocks and shares option/a mixture of the two.

The Coventry BS is currently offering the best rate for cash (3.25%).

Re stocks and shares, other posters have given Charles Stanley a favourable mention.

http://monevator.com/how-to-invest-for-children/

http://www.hl.co.uk/investment-services/investing-for-children

http://moneytothemasses.com/quick-savings/parents/best-junior-stocks-and-shares-isa

AnotherJoe

atush wrote: »

I would use equities over cash. And I would examine if you want them to have access at age 18 or would you like it to be older.

Do you use your own ISA allowance each year?

Indeed. If you dont fill up your ISA allowance each year, then open an ISA 'for her' but in your name. That way if she's utterly ditzy at 18 its your money and you can hang on to it until later.

And yes, please dont put cash in it. Pick a low cost global equity fund and a regular savings plan otherwise you get charged far too much for the frequent purchases of low amounts.

theshed

Sorry for hijacking another thread but I still cannot figure how to start my own

Grandad has given each of my three children, age 14,17,20, £1000 to invest.
We are deciding whether to go for Life Time, Help to Buy ISA or even start a Pension ?
Or even possibly start one of the current 5% deals some banks offer.
We could continue to add a small amount to the investment each month.
Thanks

xylophone

Do the younger two already have JISAs?

MallyGirl

the 14 year old would not have the same options as the 20 year old. The 17 year old may be treated as an adult by some and a child by others.
You have to be 18 for LISA/HTB ISA I think. My 15 yo DD gets 3% from Santander mini 123, 4% from Halifax reg saver, 3.5% from Nationwide FlexSaver

theshed

No they do not have JISA's. I did look at them originally but they do not seem to offer any great benefit.
Not aimed at Children but we have accounts with both First Direct and Halifax so we could take advantage of their current 5% regular saver offers, though that is for one year only.
Really wanted something that would help them along in life, but all options are open.
Thanks

Westie983

theshed wrote: »

Sorry for hijacking another thread but I still cannot figure how to start my own

Grandad has given each of my three children, age 14,17,20, £1000 to invest.
We are deciding whether to go for Life Time, Help to Buy ISA or even start a Pension ?
Or even possibly start one of the current 5% deals some banks offer.
We could continue to add a small amount to the investment each month.
Thanks

Your 17 & 20 could open a help to buy ISA, and put £200 a month and as it builds up you get the bonus on it if and when they decide to buy a property.

Lifetime ISA is launched next month, not much information has been given yet about who will offer and what rates, but your children again could get to the money if they purchase a property and if not it will not be accessible till aged 60.

I dont know much about stakeholder/SIPP pensions for children but worth looking at these links to get more information.

Help to Buy ISA

Lifetime ISA

Westie983