Best saving/isa for new baby?

Paulcortina

As above I want to open a savings account or isa for my new son.i plan on depositing a small amount each month plus any extra money he gets from birthdays etc till around his 18th.
Thanks paul.

Tom99

A Junior S&S ISA would probably give a better return over 15yrs that a cash savings account.
My two have JISA with Fidelity via Cavendish
https://www.cavendishonline.co.uk/junior-isa
There are no dealing charges which is essential if you are investing small amounts monthly and the annual admin charge is 0.25%. There is a minimum monthly investment of £50 but my two started out at £20pm which they were happy with.

If you are happy to invest only in Vanguard funds their annual charge is only 0.15%:
https://www.vanguardinvestor.co.uk/investing-explained/stocks-shares-junior-isa
They say monthly investment is from £100pm but I don't know how flexible that is.

There will be other platforms as well you can investigate.

In terms of which fund to invest in I think many people would suggest one which invests in worldwide shares of which there are a number to choose from. This one as an example, there are plenty of other:
Vanguard LifeStrategy 100% Equity Accumulation (GBP)
https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/v/vanguard-lifestrategy-100-equity-accumulation
That particular fund is 100% equities but there are others in the same series which mix equities/bonds in different ratios 80/20, 60/40, 40/60 etc.

jaybeetoo

You’ve got 18 years for the money to grow. If it were me I’d invest it. I did that for my children and it has paid off handsomely.

IanSt

You might want to keep the money saved/invested in your own name rather than in your son's.

Then if other children come along you can simply increase the amount you are putting away and when they get to an age where you feel it appropriate share it out between them.

I did this for our children, putting some into savings but the majority into investments, and was then able to share out the total a few years ago. If I hadn't done this, then the first born would have got a lot more money than the second simply because he was luckier with the stockmarkets ups and downs.

Zola.

I use Vanguard direct for my son's Junior S&S ISA...I put in the child benefit plus a little more each month into LifeStrategy 100% acc.

Flobberchops

Congratulations!


Good "high street" picks might include Halifax with their 4.5% kid's regular saver and 3% cash JISA. A stocks and shares JISA would be a good idea too.

xylophone

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

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

jaybeetoo

IanSt wrote: »

You might want to keep the money saved/invested in your own name rather than in your son's.

Then if other children come along you can simply increase the amount you are putting away and when they get to an age where you feel it appropriate share it out between them.

I did this for our children, putting some into savings but the majority into investments, and was then able to share out the total a few years ago. If I hadn't done this, then the first born would have got a lot more money than the second simply because he was luckier with the stockmarkets ups and downs.

Depending on your circumstances and the amounts involved, be careful of putting yourself in a position where you end up paying tax on the kids investments (tax on income and/or capital gains).

Alice_Holt

I'd suggest a S & S JISA until your son is 13 (or so). Per posts 2 & 3.

Then for the last 5 years, redirect contributions into a savings product.

That way at 18 your son gets the benefit (hopefully) of long-term equity growth (5 to 18 years).
And more certain savings over the 0 to 5 year shorter period.

Alexland

Our young children have Vanguard S&S Junior ISAs but given the low return expectations from current equity and bond market valuations they might do just as well transfering to the best buy 3.6% Cash Junior ISA and avoiding the nearly 0.4% platform and fund fees. Vanguard's own forecasts are only expecting an adventurous mixed asset allocation to deliver an average 4% pa nominal return over the next 10 years so why take capital risk?

surreysaver

I have a Halifax Kids Regular Saver. Every year it matures into another kids account, and I use that to top up the next year's Kids Regular Saver to the max £100 each month (assuming you're not going to fund it to the max each month anyway)
If you're near Wales there's Principality's Learner Earner as well at 4%