Where to save for children’s uni fees

jenni_fer

Exactly this situation, regular savers x2 with the prior year amounts in at 2%

Wobblydeb wrote: »

With the current low interest rates, it will be a while before you need to worry about the £100 interest limit. Plus, you'll only pay tax if you are also over your own personal savings allowance https://www.gov.uk/savings-for-children

Use regular savers or current accounts initially while the pot builds up. Either the Nationwide accounts mentioned by xylophone, or Halifax have some kids accounts at good rates. 4% regular saver (up to £100 / month) and 2% instant access (up to £20,000 although you hit the £100 total interest limit when you've got £3.1k in there and are making £100 / month saving).

jenni_fer

Agreed, but I'm likely to have a good idea well in advance and be able to do something with it accordingly, plenty of opportunity to find other things for them to spend it on on their behalf...

cloud_dog wrote: »

This applies to the OP also...

Jenn_ifer, you do realise that (based on what you have shared) the money you have accumulated appears to be in a bare trust for the child; the money belongs to the child; and is their responsibility at age 18 (in England).

I appreciate that this comes off as a little bit 'scaremongering' but if the child (18) chooses to blow the money on having a good time you have no control over that.

People really need to consider the potential implications of their actions. If you want a say/control over how the money is used you either need to go down the route of creating an appropriate trust (discretionary for example) or retain it under your own name; or some mixture.

jenni_fer

Apologies for replying to these as I come to them (and so many weeks down the line)

In theory yes, but having lost out when the markets crashed post 9/11 I'm way too risk adverse for stocks and shares at the moment.

jimjames wrote: »

If you are planning for money you'll need in 10+ years then investments are really the way to go not cash savings. If you use a S&S ISA then you won't be subject to any income or capital limits other than the £20k per year investment limit.

atush

How did you lose out? Did you pull out of the market?

I was invested then, and all mine recovered. Plus I bought more at knock down prices and made a lot. Got BA as a penny share.

jenni_fer

The event the money was invested for (my university fees)
happened, less came out than originally went in. Bad timing but enough to make me wary.

atush wrote: »

How did you lose out? Did you pull out of the market?

I was invested then, and all mine recovered. Plus I bought more at knock down prices and made a lot. Got BA as a penny share.

elephantrosie

i was going to suggest investment as well, like the others have done.

250 quids monthly x 6 years really is not going to be enough for university these days. (sorry to be harsh)

you may look for lower risk investments. individual stocks picking are by far one of the riskiest investments, and should only be reserved for experienced investors (IMHO). try ETFs, forex robo-advisors, etc?

elephantrosie

education is getting more expensive with time and the prices is likely to go up by the time your little ones go for theirs.

i honestly feel education is the best gift my parents have given me, after their unconditional love and care.

atush

jenni_fer wrote: »

The event the money was invested for (my university fees)
happened, less came out than originally went in. Bad timing but enough to make me wary.

If the money was for a specific time period that close, it should never have been invested.

Money is invested for the long term, and cash fund for emergencies, so you dont have to sell in a crash, is needed.

If you had done this properly, you could have waited for market recovery.

So there is no problem with the markets per say, just you investing money needed in t he short term, and not having enough emergency cash.

atush

elephantrosie wrote: »

i was going to suggest investment as well, like the others have done.

250 quids monthly x 6 years really is not going to be enough for university these days. (sorry to be harsh)

you may look for lower risk investments. individual stocks picking are by far one of the riskiest investments, and should only be reserved for experienced investors (IMHO). try ETFs, forex robo-advisors, etc?

6 years is a shortish time, but if invested monthly it can buy more investments during a downtorun.

I would advise investment trusts with a good long term income record.

Eco_Miser

atush wrote: »

6 years is a shortish time, but if invested monthly it can buy more investments during a downtorun.

I would advise investment trusts with a good long term income record.

Six years is a very short time for dripfeeding an investment. At some point you need to switch from investing to saving the new contributions (four years from the time you'll be cashing in? five?), and possibly switch the whole investment into cash or near cash to protect from a crash just before it's needed.