Advice - savings accounts for children

pete1412009

Hi there,

I would like to set up savings accounts for my two boys.  I'd like to pay in an amount each month, and then be able to give it to them once I feel that they are old enough.

As I don't know how sensible they will be when they turn 18, I would rather them not be able to access the savings account when they reach this age.  Also, once I pay money in, I don't want to be able to withdraw it again.

Could anybody recommend something that would suit my needs?

Many thanks,
Peter

pramsay13

If you don't want them to be able to access you will need to just save it in your name and distribute it at a time you feel is suitable.
If you use a fixed term savings account you have to leave it there for a certain length of time.

pete1412009

pramsay13 said:

If you don't want them to be able to access you will need to just save it in your name and distribute it at a time you feel is suitable.
If you use a fixed term savings account you have to leave it there for a certain length of time.

Thanks for this.

Who is generally regarded as offering the best fixed term savings accounts?

pramsay13

https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#fixedsavings

colsten

Fixed term savings accounts generally only allow one deposit, or deposits only in the first fortnight after account opening. You can find current rates on https://moneyfacts.co.uk/savings-accounts/

You don't say how many years you want to save for - if it's over a longer period, investments are almost certainly a much better choice than savings.

pete1412009

I'm planning to save for at least 12-15 years, and then be able to transfer the money to my children when they need it.

cloud_dog

In my humble opinion, you really should think about investing this money rather than cash savings over a 12 to 15 year period.

Regarding access at 18, it doesn't have to be one thing or another, you could split the amount so that some is invested in the child(rens) account and some retained in your name.  Additionally, if you felt the child(rens) account had reached a certain size limit you could stop paying in to their accounts and add it in to your account.

I genuinely believe this is something worth considering.