Children’s savings accounts

ShandyAndy_2

Hi All

I have 2 daughters 6 and 10 and my youngest doesn’t even have a bank account, life is passing by so quickly and I want to open them both some kind of high interest account and gift it them towards buying a house when old enough. 

What would be the best course of action, I would have to put more in the eldest account each month so they both have the same amount. 

Many thanks 

eskbanker

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

MCD1984

I personally have 3 lots of savings for my daughter. We contribute a set sum to a Vanguard S&S ISA monthly invested in a medium risk fun. Our thinking here was that we didn't want her having control over a huge sum at 18 so are limiting the amount that goes into this account, but should be enough to cover driving lessons, first car etc. We switched to this account from a cash ISA as the 3.5% return I felt could be beaten over the next 10-12 years.

I then place the same amount into a Junior SIPP for her again with monthly contributions. The idea behind this account is to show her how money can grow, And having this money compoundng from a young age should hopefully really pay dividends later.

Lastly I have a fund that I hold within my own S&S ISA which again I pay a fair sum into monthly which is earmarked for future life events for my daughter. House purchase, Wedding etc. The reason we have kept this out of her ISA is I don't want her having control of a large sum upon turning 18 as much as I will be educating her as she grows up I know what I was like at 18.....

Nurse2047

We have stocks and share isas with Vanguard for our children, we invest in lifestrategy fund and only pay in small amounts as same as MCD1984 said I don’t want them having too much to play with at 18. 

I pay in £25 a month into each of their premium bonds and £50 a month into their Junior SIPPs with Fidelity. 

Some may disagree with a junior pension however I’m hoping with compound interest this will encourage my children to take an interest in their pensions (I didn’t until I was 40 😳). 

Any other money I pay into my S&S ISA with vanguard as I have control over it and can gift it when I feel ready. 

vacheron

I was in the same position as you 2 years ago. I had money set aside for my (then) seven year old son as cash and given the timescales Involved also felt that S&S investments stood a much better chance of offering higher returns, 

Just as per MCD1984, I didn't like the thought of Junior ISA's, as I think the idea of them being made aware of the funds at 16, and then having it handed to them at 18 is a bad idea for a larger sum of money, so I also set up an ISA in my name and am contributing to that on a monthly basis in addition to moving the cash funds we had set aside over to this by spreading out the total payments over a couple of years.. This will then become his "kickstart" fund for large life events etc. once he is mature enough.

In my case the provider I selected was Vanguard and the monthly deposits are split 50/50 between the VLS60 and VLS80 Equity Accumulation funds and since January 2020 this has provided a total return of 28.7%.

ShandyAndy_2

You all sound so organised, I’m great at saving money but lazy with setting ISA etc up, Didn’t take into account that they would have access at 18, not keen on that, I may start my own stocks and shares ISA and split between them, I want it to be a little kick starter for buying a property, they can fund their own driving lessons and cars, I never got help with those purchases and it taught me to respect and look after the cars more. 

xylophone

You might consider a cash JISA for each child into which birthday /Christmas present money could be paid?

This could give a modest but welcome sum at age 18 to help with driving lessons etc?

https://www.thisismoney.co.uk/money/saving/article-1583863/Best-savings-rates-Junior-Isas-children-s-accounts.html

cloud_dog

We started with the stocks and shares JISA (CTF as it was then).  I would recommend you look at using Fidelity if you go down this route as they do not apply a platform charge on the junior accounts.

As the JISA reached a certain amount we switched the payments in to investments in our own S&S ISAs (for their benefit).

In the last couple/few years, as they approach 18 we have added monies in to a cash account for them.

They have pretty much always had a savings account for birthday, xmas gifts etc, migrating to a cash card account and then bank account.