Savings account for newborn baby

CasualMFW

Hi all, 
My newborn son is rapidly accumulating money from various relatives and friends.

I'm looking to set him up a bank account. I'm happy for it to be fixed for a period of time if it increases the interest rate as it won't need to be withdrawn but I don't want one that cannot he accessed until he is 18 for example.

If you were in my position, which account would you go for?

Keep_pedalling

I would be putting it in a S&S JISA, the value of any cash account would be rather battered by 18 years of inflation. 

wmb194

CasualMFW said:

Hi all, 
My newborn son is rapidly accumulating money from various relatives and friends.

I'm looking to set him up a bank account. I'm happy for it to be fixed for a period of time if it increases the interest rate as it won't need to be withdrawn but I don't want one that cannot he accessed until he is 18 for example.

If you were in my position, which account would you go for?

I would do a combination of things, and this would include saving in my own name for the child as well.

Open a children's savings account somewhere. It'll be a bare trust in the child's name i.e. the beneficial owner but with you as the trustee. Halifax has a regular saver that's popular and if you already bank with Barclays and Lloyds children's accounts with them are easy to open. 

Given the timeframes, a good idea is to look at an investment account for children e.g., AJ Bell offers a bare trust dealing account that will allow access.

https://moneyfactscompare.co.uk/savings-accounts/childrens-savings-accounts/

https://www.ajbell.co.uk/learn/invest-for-children

B0bbyEwing

Keep_pedalling said:

I would be putting it in a S&S JISA, the value of any cash account would be rather battered by 18 years of inflation. 

What about when you just have £5 here or £10 there to go in to the account? 

Can you even trade so low? 
And what about trade charges? 

AFAIK some don't charge trade charges for kids? Which leaves my question of can you even trade that low. 

eskbanker

B0bbyEwing said:

Keep_pedalling said:

I would be putting it in a S&S JISA, the value of any cash account would be rather battered by 18 years of inflation. 

What about when you just have £5 here or £10 there to go in to the account? 

Can you even trade so low? 
And what about trade charges? 

AFAIK some don't charge trade charges for kids? Which leaves my question of can you even trade that low. 

Minimum transaction values will naturally vary across providers, but for those with trivial sums being paid in, accumulating the money in uninvested cash before investing it would seem to be the answer....

Albermarle

B0bbyEwing said:

Keep_pedalling said:

I would be putting it in a S&S JISA, the value of any cash account would be rather battered by 18 years of inflation. 

What about when you just have £5 here or £10 there to go in to the account? 

Can you even trade so low? 
And what about trade charges? 

AFAIK some don't charge trade charges for kids? Which leaves my question of can you even trade that low. 

Fidelity is one JISA provider with no platform charges, or buying charges for funds. However there is a minimum amount of £25 a time.

xylophone

You could open a standard  child account for pre 18 access and a  stocks and shares Junior ISA for the longer term?

Use the JISA for gifts from parents - easier from the tax perspective as you will not then need to worry about the "£100 rule".


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

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

Fidelity/Hargreaves Lansdown are often mentioned by other posters.

Re choice of investments

https://monevator.com/low-cost-index-trackers/

https://monevator.com/best-global-tracker-funds/

Cus

If you are not using your own S&S ISA allowance at all, I would use it for your son.  If you are using your allowance partially then use what you have left available, for him, and maybe always put his money in suitable tracker fund so you know that share is his.

Keep_pedalling

Cus said:

If you are not using your own S&S ISA allowance at all, I would use it for your son.  If you are using your allowance partially then use what you have left available, for him, and maybe always put his money in suitable tracker fund so you know that share is his.

The OP should not be doing that with money gifted to their son, it is not their own money.