Newborn bank/savings account

carnut1234

Hello All,

Baby Freddie is just over 1 week old and in need of his first bank/savings account. I've been reading up on which account to go for however I'm still confused on his best options.

We have under £3000 lump sum along with around £100-£150 a month coming from ourselves, grandparents and uncle and not sure the best way to start saving this. We would also like to add addition birthday/gifting money to this as and when a relative is feeling generous.

It would be great to have some advise on where to start looking.

if it helps myself and wife bank with either lloyds or RBS however are happy to open which ever account.

thanks in advance,

Dan

csgohan4

https://www.moneysavingexpert.com/savings/
is a good start

PRAISETHESUN

Is the money being gifted to you to spend on the child, or being gifted to the child directly? This will dictate what type of account you need to be looking at. Long-term you're probably best looking at some sort of investment to outpace inflation. If you save the money in the child's name, keep in mind that at 18 they will have full access to the money and will be able to spend it on whatever they want. Otherwise see here: https://www.moneysavingexpert.com/savings/child-savings-tax-free/

grumiofoundation

Assuming you want the savings in their name (I. E. It’s their money and they get control of the money when older). Links below to MSE pages on junior savings and junior ISAs (cash and stocks and shares) 
https://www.moneysavingexpert.com/savings/child-savings-tax-free/
https://www.moneysavingexpert.com/savings/junior-isa/

83705628

If you're not comfortable with investing, then putting the lump sum in a NS&I junior ISA,(https://www.nsandi.com/junior-isa) is a good start. Also see info about children's savings account here: https://www.moneysavingexpert.com/savings/child-savings-tax-free/

carnut1234

thank you for the links, lots of reading up I think.

we are still trying to decide if we have the savings or the baby has the savings in their name. I wish the age was 21 rather than 18 when they take control.

The money can be either gifted to us or the baby, which ever way round but essentially this is the future house deposit, first car pot.

grumiofoundation

Not in this position yet but personally I think we will be keeping the money we eventually will gift to children (unless we choose to blow it all and send them pictures from our world travels instead!) in our names, the risk that they aren’t able to deal with the responsibility of having money might be too high for me? 

Probably will be  more efficient to put on their name (tAx free in JISA, better interest rates). But if you aren’t going to use your own stacks and shares allowance/don’t pay tax on interest less of a big deal. 

cloud_dog

carnut1234 said:

thank you for the links, lots of reading up I think.

we are still trying to decide if we have the savings or the baby has the savings in their name. I wish the age was 21 rather than 18 when they take control.

The money can be either gifted to us or the baby, which ever way round but essentially this is the future house deposit, first car pot.

As with most things in life, the answer is not one or the other but a mixture, a mixture of types of accounts and a mixture of in your name and their name.

The NS&I Junior ISA account (3.25%) is very good in these days of low interest and low inflation but, if you can stomach it I would suggest you seriously consider putting the child's money in to a stocks and shares JISA.  Other monetary gifts (birthday / Xmas) could go in to a child's savings account for them to benefit from as they grow (become aware of money and its uses).  In addition we started a regular S&S investment in the OH's name but for the benefit of the child(ren); whatever that may mean/be.

xylophone

If the money has been given to the child, then it should be in an account in his name.

If you want to save for your child but hold the money in your name to give at a time of your choosing, then consider a stocks and  shares ISA of your own and think of it as "earmarked" for your child.
With regard to JISA 
https://www.gov.uk/junior-individual-savings-accounts
https://moneytothemasses.com/quick-savings/parents/best-junior-stocks-and-shares-isa