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Long Term Child Savings
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Nationwide do a Junior ISA where you deposit up to £50,000. I'd say that was the best.0
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louloubelle79 wrote: »Hi my kids have a S&S JISA with Vanguard, would you recommend me getting my own in my name then to drip feed £100 in a month.?
If it is long term that you are looking at then investing through an S&S ISA is likely to deliver better returns than a savings product.Nationwide do a Junior ISA where you deposit up to £50,000. I'd say that was the best.
The person you are replying to already subscribes to S&S JISAs for their children so this may not be possible if they are maxing out their allowance in those.
I'm not clear on where you are getting the £50,000 figure from. The annual allowance is currently £4,128. If that allowance did not change then a child under five could exceed a £50,000 deposit before reaching 18. There is nothing that I can see in the account T&Cs that says that the maximum deposit is £50,000 over the life of the account.
Perhaps you are confusing the Nationwide JISA with their Smart Limited Access Account, which does have a maximum deposit of £50,000. This is not a JISA and only pays 2.5%, whereas the Santander 123 Mini pays 3% on balances between £300 and £2000. As the OP is talking about depositing £100 p/m it would take them 20 months to exceed the balance available for interest payments, and would therefore be a better option, if they want to remain in cash.
However, given that they seem to want to invest for the long term then neither cash offering is particularly appropriate.0 -
ValiantSon wrote: »If it is long term that you are looking at then investing through an S&S ISA is likely to deliver better returns than a savings product.
The person you are replying to already subscribes to S&S JISAs for their children so this may not be possible if they are maxing out their allowance in those.
I'm not clear on where you are getting the £50,000 figure from. The annual allowance is currently £4,128. If that allowance did not change then a child under five could exceed a £50,000 deposit before reaching 18. There is nothing that I can see in the account T&Cs that says that the maximum deposit is £50,000 over the life of the account.
Perhaps you are confusing the Nationwide JISA with their Smart Limited Access Account, which does have a maximum deposit of £50,000. This is not a JISA and only pays 2.5%, whereas the Santander 123 Mini pays 3% on balances between £300 and £2000. As the OP is talking about depositing £100 p/m it would take them 20 months to exceed the balance available for interest payments, and would therefore be a better option, if they want to remain in cash.
However, given that they seem to want to invest for the long term then neither cash offering is particularly appropriate.
And £100 a month for an account which has a limit of £50k, I would say, is long term.
With Santander, you'd reach £2k in under two years. Actually, less than 18 months. Nationwide would pay out exceedingly far more in the long term because of accrual. So between the two, in the first 18 months, the difference on 0.5% would be negligible.
It depends on the OPs definition of long term. The Nationwide account would pay more than any other if maximized, and the pot would literally be in the tens of times larger.If the OP could afford to deposit more than £100 in some months, this would also mean it wouldn't take so long to reach it.
Thought why you're still replying to me I don't know.0 -
And £100 a month for an account which has a limit of £50k, I would say, is long term.
Fine. I offered the alternative view (which was in line with the OP's original thoughts) that S&S investments were likely to deliver a better return in the long run. The OP is looking at investment growth which, realistically should exceed 2.5% in a well-diversified S&S portfolio over the long term. The OP understands this situation and they are already investing in S&S JISAs for their children. If they wanted to remain totally in cash then your suggestion might be worth considering.With Santander, you'd reach £2k in under two years. Actually, less than 18 months.
Depositing £100 per month would take 20 months to reach a balance of £2000, so not less than 18 months! (2000 divided by 100 is 20).Nationwide would pay out exceedingly far more in the long term because of accrual. So between the two, in the first 18 months, the difference on 0.5% would be negligible.
Not correct. £100 per month over 20 months (the correct time period to reach a balance of £2000) at 3% would earn £52.61 in interest. In the Nationwide account you cited (which by the way, is not a JISA as you erroneously claimed) the same monthly sum over 20 months would earn £43.83 in interest, i.e. £8.78 less than if using the Nationwide account for the initial period. The Santander account would deliver more interest over the same time period. There would be nothing then stopping the OP from opening another account (possibly the Nationwide account) and making further deposits into that account, while continuing to earn 3% on the £2000 in the Santander account (they could move the interest payments from Santander into the other savings account to maximise the return), which would net them an additional £60 each year. This additional £60 would augment the interest earned in the Nationwide account, thus boosting their effective interest rate.It depends on the OPs definition of long term. The Nationwide account would pay more than any other if maximized, and the pot would literally be in the tens of times larger.
No it doesn't, and no it wouldn't, as I have shown above.If the OP could afford to deposit more than £100 in some months, this would also mean it wouldn't take so long to reach it.
They have said that their intention is to deposit £100 each month. Even if they found that they could afford to deposit more it would not make just using the Nationwide account a better alternative for the initial period, and nor would it make it a better option in isolation beyond that point.Thought why you're still replying to me I don't know.
Don't be such a child. The world doesn't revolve around you.
I have posted a reply to a thread where someone was asking for opinions on their strategy. I was providing additional food for thought for the OP. It also happened that you had posted in the same thread and what you said didn't offer the best return based on the OP's circumstances.
Just because you have thrown a hissy fit previously because I have shown that you are wrong about something doesn't mean that I am not going to post in the same threads as you and, if you are wrong, or missing something, point that out. Grow up.0 -
It could be split between the JISA and an ordinary easy access child account.
https://moneyfacts.co.uk/savings/childrens-savings-accounts/
http://www.thisismoney.co.uk/money/saving/article-1583863/Best-savings-rates-Junior-Isas-children-s-accounts.html
It's a personal view, but if I give my nieces or nephews money (not that I normally do - preferring to give a physical gift) then I expect them to be able to spend that money on something they want in the short to medium term. I do not expect their parents to whisk it away and put it into a savings account that they can't access for years to come.0 -
ValiantSon wrote: »Fine. I offered the alternative view (which was in line with the OP's original thoughts) that S&S investments were likely to deliver a better return in the long run. The OP is looking at investment growth which, realistically should exceed 2.5% in a well-diversified S&S portfolio over the long term. The OP understands this situation and they are already investing in S&S JISAs for their children. If they wanted to remain totally in cash then your suggestion might be worth considering.
Depositing £100 per month would take 20 months to reach a balance of £2000, so not less than 18 months! (2000 divided by 100 is 20).
Not correct. £100 per month over 20 months (the correct time period to reach a balance of £2000) at 3% would earn £52.61 in interest. In the Nationwide account you cited (which by the way, is not a JISA as you erroneously claimed) the same monthly sum over 20 months would earn £43.83 in interest, i.e. £8.78 less than if using the Nationwide account for the initial period. The Santander account would deliver more interest over the same time period. There would be nothing then stopping the OP from opening another account (possibly the Nationwide account) and making further deposits into that account, while continuing to earn 3% on the £2000 in the Santander account (they could move the interest payments from Santander into the other savings account to maximise the return), which would net them an additional £60 each year. This additional £60 would augment the interest earned in the Nationwide account, thus boosting their effective interest rate.
No it doesn't, and no it wouldn't, as I have shown above.
They have said that their intention is to deposit £100 each month. Even if they found that they could afford to deposit more it would not make just using the Nationwide account a better alternative for the initial period, and nor would it make it a better option in isolation beyond that point.
Don't be such a child. The world doesn't revolve around you.
I have posted a reply to a thread where someone was asking for opinions on their strategy. I was providing additional food for thought for the OP. It also happened that you had posted in the same thread and what you said didn't offer the best return based on the OP's circumstances.
Just because you have thrown a hissy fit previously because I have shown that you are wrong about something doesn't mean that I am not going to post in the same threads as you and, if you are wrong, or missing something, point that out. Grow up.
Why do you bother spending all this time dissecting what I say? I haven't even read it. I don't even know why you keep replying to me. You're trying to say I'm wrong again, but the account does let you deposit up to £50k and is good for long term, and is better than up to £2k in Santander. Wrong, I never said don't post in the same thread. I specifically said replying to me, or quoting me. I'd like to see you quote where I said don't post in the same thread. And when did I say the world revolved around me? I think you're just looking for a reason who try and come off as some finance connoisseur but it's not really working. You don't seem to get that on the last thread, you was disagreeing with me though I was agreeing with you; you was fighting yourself. Doesn't sound, or look, or read, like I'm the one having a 'hissy fit' here quoting loads of quotes... You don't sound valiant either, by the way. :beer:0 -
ValiantSon wrote: »It's a personal view, but if I give my nieces or nephews money (not that I normally do - preferring to give a physical gift) then I expect them to be able to spend that money on something they want in the short to medium term. I do not expect their parents to whisk it away and put it into a savings account that they can't access for years to come.
But it's not longer your money so your expectation means jack :rotfl:0 -
Why do you bother spending all this time dissecting what I say?
Because you are wrong and giving misleading advice.I haven't even read it.
Which further demonstrates your ignorance. Not being willing to learn is one of the definitions of ignoranceI don't even know why you keep replying to me.
If you had read what I posted you would have an answer to that question.You're trying to say I'm wrong again,
I'm not trying to say that you are wrong; I am saying that you are wrong.but the account does let you deposit up to £50k and is good for long term, and is better than up to £2k in Santander.
If you'd bothered to read what I wrote, rather than throwing another hissy fit, you'd find an explanation.Wrong, I never said don't post in the same thread. I specifically said replying to me, or quoting me. I'd like to see you quote where I said don't post in the same thread.
You said a moment ago that you hadn't read my reply, but clearly you have. Sadly, you once again won't accept that you have made a mistake, or that there might be a better alternative to your view.
What exactly am I wrong about? Your lack of syntax does, sometimes, make it rather difficult to follow what you write,.And when did I say the world revolved around me?
You didn't say it, but the nature of many of your posts suggests it. You asked why I was replying to you: I wasn't. I was replying to the OP, but referencing your post because there were oversights and logical flaws in it that I wished to draw the OP's attention to so as to better assist them with their question.I think you're just looking for a reason who try and come off as some finance connoisseur but it's not really working.
A finance connoisseur??? "Ah, this one year fixed rate savings bond is truly exquisite!"
If by that you mean that I am posting accurate information then I guess so. I hadn't realised that the purpose of the forum was to knock off some ill-informed and unjustified guff. Thank you for enlightening me, oh wise one.You don't seem to get that on the last thread, you was disagreeing with me though I was agreeing with you; you was fighting yourself.
You weren't agreeing with me. You were actively disagreeing and trying to suggest that I couldn't calculate interest rates and yet, funnily enough, it was you who had got the rates wrong (and you've done it again on another thread this evening). You also tried to dismiss certain accounts as not being relevant because they didn't ft your flawed argument.Doesn't sound, or look, or read, like I'm the one having a 'hissy fit' here quoting loads of quotes... You don't sound valiant either, by the way. :beer:
Doesn't it? Maybe in your egocentric little world it doesn't. I can't account for what goes on in your mind. And well done on toasting yourself again!
My username has a meaning that you will not and could not understand, because you lack the knowledge to do so. That isn't your fault, but rather a fact of life. Nobody here would understand it.
Stop being so childish and accept that you can make mistakes. When you do make a mistake, the grown up thing to do is accept it, and, even, thank for people for pointing it out, rather than hijacking threads to go on a little tirade.
Grow up.0 -
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