Best savings options for baby/toddler?

Harriette17

My husband and I have 2 children, aged 2 and 3 months. 

We’ve been really bad at setting any form of savings up for them but I’m at a complete loss as to what is best. I’ve read the guides but just feel totally overwhelmed - hence not doing anything about it. 

I don’t know whether to go for a savings account, premium bonds or JISA (stocks and shares or cash)?! 

My husband and I very disorganised when it comes to our own finances so I need a simple option. 

I don’t understand the £100 tax - at what level of savings would this apply?! 

Any advice would be greatly appreciated as I’m just totally overwhelmed by it all. 

Bigwheels1111

That’s a nice thing to do for your kids. My parents never did that. 
There are a lot of posts on here about it, scroll through a few Pages.
The £100 tax, when you have saved enough in their accounts that the interest is over £100 you or your husband will pay the tax on it.
So I would setup one saving account for one child by mum and one for the other child by dad.
From memory the opinion on here is child isa, no tax payable. It’s not an isa but I don’t know what it’s called as never needed one. From what I see it’s a Jisa.
The main thing to know is, when the child is 18 they gain access to the money.
So can save of blow through it on day one.
As you say, very disorganised when it comes to our own finance.
Instilling a more organised approach towards saving and spending for you kids would be paramount.
I will see if I can find a link to a post or two.

https://forums.moneysavingexpert.com/discussion/6491029/fidelity-for-childrens-s-ss#latest

https://forums.moneysavingexpert.com/discussion/6484174/savings-account-for-grandchildren/p1

https://forums.moneysavingexpert.com/discussion/6349394/child-turning-18-isa-allowances-for-year#latest

lots of links.

https://forums.moneysavingexpert.com/search?domain=all_content&query=jisa&sort=-dateInserted&scope=site&source=community

Keep_pedalling

With very young children a S&S JISA would be my choice. You don’t need to know anything about S&Ss, just use a single global fund. We fund our 3 grand children’s JISAs. We got our our children to open a Vanguard JISA for each of them and we top them up each birthday. 

george4064

I’d also recommend exploring the Junior Stocks & Shares ISA option. Higher risk but higher potential returns, in years to come they’ll thank you more so for setting up a stocks & shares JISA than a (lower risk, lower potential returning) Cash ISA.

Albermarle

As the children are so young then over a period of 18 years, a stocks and shares ISA will almost certainly grow more than a cash savings ISA.
If you read the first link supplied by BigWheels111, you will see a recommendation of what to choose.

However the parents organising their own finances better, will most likely be of much more benefit to the kids, than having their own personal pot. So maybe an area to work on for the future.

xylophone

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


If you are prepared to accept that the child (young adult) has the absolute right to access at age 18, consider a JISA.

For such young children, consider the stocks and shares option - Fidelity and Hargreaves Lansdown have been given favourable mentions.

A global multi asset fund could be a suitable choice.

https://monevator.com/passive-fund-of-funds-the-rivals/

https://monevator.com/best-global-tracker-funds/comment-page-1/

https://www.fidelity.co.uk/investing-for-children/

https://www.hl.co.uk/investment-services/junior-isa

Cash Junior ISAs here

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

Sg28

Be aware with a JISA the money is not accessible by anyone until the child is 18. Then its only them who can access it.