Childrens savings

Pat456bikes

Any suggestions on where children's presents in terms of cash can be put to keep them safe for when child reaches 18.
Regular saver not really appropriate as ad hoc times and amounts
Not enough for a fixed rate savings account at least at start.
Many years ago we used the Harpenden Building society account for under 18s which paid good interest rates but now so much lower than elsewhere.
Would be good to just put amounts in and leave rather than each year shop around and move the child's money to earn more interest.
Thanks fir thoughts

eskbanker

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

Pat456bikes

Thanks I've looked at both.
Junior isa only works once larger sum accumulated and at the moment not really best with interest rates.
Really after an account paying decent rate of interest that irregular amounts can be paid into but inaccessible until child is 18.
May need to just put in normal account for child and then transfer at the end of each year into something more suitable 

refluxer

Pat456bikes said:

Junior isa only works once larger sum accumulated and at the moment not really best with interest rates.

How do you mean ? You'll get the same interest rate whether you have £1 or £100k in a Junior ISA and can add to it any time you like, subject to the £9k PA allowance. 

The current highest-paying Junior Cash ISA (if you're looking at saving rather than investing) is currently 4.95%, which isn't much lower than the best adult easy access (or even fixed rate) savings accounts.

The other advantage of a JISA is that the interest earned from money given to a child by a parent in a JISA isn't subject to tax, which might otherwise be an issue in a non-JISA child's account if it exceeds £100 (per parent) and a parent has exceeded their own PSA.

Pat456bikes said:

Really after an account paying decent rate of interest that irregular amounts can be paid into but inaccessible until child is 18.

A Junior ISA ticks all of those boxes - you just need to choose one with a good rate and be prepared to transfer it around if the rate stops being competitive.

cloud_dog

Pat456bikes said:

Thanks I've looked at both.
Junior isa only works once larger sum accumulated and at the moment not really best with interest rates.
Really after an account paying decent rate of interest that irregular amounts can be paid into but inaccessible until child is 18.
May need to just put in normal account for child and then transfer at the end of each year into something more suitable 

4.95% interest rate is pretty competitive.

I'm unsure why the size of the pot has any bearing TBH?

Is the intent of the giftor that the money is not to be accessible until age 18, or is that your interpretation?  They aren't gifts that they might have wanted the child to have access to prior to age 18?

May need to just put in normal account for child and then transfer at the end of each year into something more suitable

I'm unsure what that means.  Isn't that sort of what you are asking about now?

Pat456bikes

I am talking about cash gifts from non parents given in the expectation money won't be accessed until child is 18.
Presume you can't open a junior ISA and keep adding in amounts from various people? None would be enough by themselves to warrant opening a junior ISA.
Ideally I  want an account earning a reasonable interest  amount that these amounts from various people can just be put in as and when received and left until the child is18. These are gifts people  are giving while the child is young for that purpose 

eskbanker

Pat456bikes said:

Presume you can't open a junior ISA and keep adding in amounts from various people?

Why would you assume that (wrongly)?

Pat456bikes

Apologies thought junior isa would be like ordinary isa where different issues end but I suppose that's because I've always done fixed rate isas. So with variable junior ISA any relatives and friends can put in any amounts at any time?

eskbanker

Pat456bikes said:

Apologies thought junior isa would be like ordinary isa where different issues end but I suppose that's because I've always done fixed rate isas. So with variable junior ISA any relatives and friends can put in any amounts at any time?

In principle such accounts can be funded by anyone but check the terms of any that you're interested in, as the fact that there's an annual contribution limit (albeit £9K) means that providers may insist that funding is controlled through one party.

Pat456bikes

Thankyou. The parents of the baby are wanting me to sort out best place for these gifts and as we well may set up a junior isa ourself for the child probably not the best course of action to set up another and have the spectre of the 9000 limit to remember. Back to square 1!

eskbanker

Pat456bikes said:

Thankyou. The parents of the baby are wanting me to sort out best place for these gifts and as we well may set up a junior isa ourself for the child probably not the best course of action to set up another and have the spectre of the 9000 limit to remember. Back to square 1!

Junior ISAs need to be opened and managed by the child's parents or guardians, but anyone looking to open a non-JISA child savings account for someone else's child might also encounter challenges, albeit not insurmountable ones if the parents are supportive....