3 Year old childs savings.

Storkeyj

Hi,

Obviously I'm aware it isn't the best time to get good rates on any savings accounts but just wanted to see if there's anything out there that might be more suitable than what I have now without trolling through different sites. I used to bank with HSBC but have now switched to Starling but I kept my childs savings account (future saver, 0.25%) I have between 2000-3000 sitting in there which we just randomly add to each month when we have extra cash left over. We never withdraw from it and add anywhere from £10-£300 a month. Can anyone advise if we would be better putting this money anywhere different to earn more or just leave it there earning what it is now? 

Thanks in advance!

george4064

Have you read through MSE's childrens savings guide?

https://www.moneysavingexpert.com/savings/child-savings-tax-free/

eskbanker

Storkeyj said:

just wanted to see if there's anything out there that might be more suitable than what I have now without trolling through different sites. 

Never a good idea to go trolling on websites....

This site has plenty of information on better kids' accounts:

https://www.moneysavingexpert.com/savings/child-savings-tax-free/
https://www.moneysavingexpert.com/savings/junior-isa/ (for money not needed until 18, although that may be better invested rather than saved)

niktheguru

There are lots of better accounts than that HSBC one. You should be aiming to get about between 1.5-3% for your childrens savings depending on the bank you want to use. For your childs age, santander are doing their 123 child account giving 3% from £1500-2000, virgin money are doing 1.85% and halifax are doing a 1.45% saver with instant access, also worth putting £100 a month in their 4% kids regular saver.

As others have said, look at the moneysavingexpert link above as well for good advice.

Notepad_Phil

If you're not planning on withdrawing from the account then might I suggest that you consider investing at least some of the money as it is likely (but not guaranteed) to produce better returns then even the best paying savings accounts. Investing should only be considered where the money is not needed to be accessed in the short term (many people would suggest 10 years as the minimum amount of time for any invested money), but I assume that the money will be put away until your child is much older so you'd probably be okay on that.

AnotherJoe

As per Notepad Phil above, for a three year old I'd advise investing, not saving becau ethe time horizon is such they shoudl come out comfortably better.

xylophone

Does your child have a JISA?
https://www.gov.uk/junior-individual-savings-accounts
https://moneytothemasses.com/quick-savings/parents/best-junior-stocks-and-shares-isa