Savings for a newborn 16 May 2019 at 3:02PM edited 30 November -1 at 1:00AM in Savings & Investments 3 replies 314 views

bpk101

Hi —

I'd like to put away around £2k—£5k into an account for my newborn... somewhere it can grow over the years and they can have access to it when they're older.

Where's the best place to save or invest it that is extremely low risk and has good returns?

Thanks.

Damper132

Its a great start im not expert but a Junior S&S ISA would be great place to start 19/20 tax free allowance is £4368 so fits right in with the amount you have quoted then tend to invest into an accumulation fund such as vanguard all cap maybe and then could maybe even put another £50 a month to one side starting next year, the miracles of compound returns are astronomical.
a £5k lump sum with £40 a month invested for 18 years at a return of 4% would see £13640 invested turn into around £23k fees excluded again no expert just an enthusiast at the moment

xylophone

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

https://www.vanguardinvestor.co.uk/investing-explained/stocks-shares-junior-isa

https://monevator.com/using-vanguard-lifestrategy-funds-life/

https://www.coventrybuildingsociety.co.uk/consumer/product/savings/children/junior-cash-isa.html

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

Albermarle

Where's the best place to save or invest it that is extremely low risk and has good returns?

All investments have a level of risk and the better the potential return the higher the risk . If you want very low/no risk you will have to put money into a savings account .

Anyway the same question about saving for new borns has been asked already this week , so if you read the threads below it should give you a good flavour of the advice given .
https://forums.moneysavingexpert.com/showthread.php?t=6000743
https://forums.moneysavingexpert.com/showthread.php?t=6001129