Saving for children

Andme1

Good morning 

I have 2 very small children and would like to set up savings accounts for them. I've looked at JISAs and I think I can open 2 and put half the allowance into each every year however that doesnt appear to be the most efficient way to save for them. Im considering a high interest monthly saver but would I have control of that once it's matured to move it and drip feed again as i do with my own savings and can us it possible for me and husband (same address) to open one each to save for a child each? 

Any other suggestions or possibilities gratefully received. 

 Thank you 

Keep_pedalling

For very small children a S&S JISA is a better option than cash JISAs. We are funding one for each of our grandchildren that was opened just after they were born.

refluxer

If you're thinking about saving for your children outside a JISA, just be aware that once they earn £100 or more in interest on money given to them by you (£100 per child, per parent), then the whole lot will be subject to tax as if it was your own so if you currently pay tax on your own savings interest, then a JISA might be a better option.

https://www.moneysavingexpert.com/savings/child-savings-tax-free/#:~:text=As we've explained, if,be taxed at their rate.

gravel_2

JISA allowance is per child, not per you. You wouldn't need to split it as long as you had the funds to subscribe fully to both.

Andme1

gravel_2 said:

JISA allowance is per child, not per you. You wouldn't need to split it as long as you had the funds to subscribe fully to both.

So I can open 2 in this tax year and add the max to both? 

gravel_2

Andme1 said:

gravel_2 said:

JISA allowance is per child, not per you. You wouldn't need to split it as long as you had the funds to subscribe fully to both.

So I can open 2 in this tax year and add the max to both? 

Remember the account is not yours, it's the child's. You are not "opening two", you are opening accounts on behalf of someone else who has their own personality as far as the tax legislation is concerned.

Albermarle

Andme1 said:

gravel_2 said:

JISA allowance is per child, not per you. You wouldn't need to split it as long as you had the funds to subscribe fully to both.

So I can open 2 in this tax year and add the max to both? 

Yes they can have one each and the max can be added to both.
AS they are small, so a long time to age 18 , then a S&S JISA is normally the recommended product.

Sg28

Be aware that money in a JISA can only be accessed once the child turns 18. 

Andme1

They're almost 4 and 1 so I'm worried Im a bit late to the sips party for at least the eldest but s&s JISAs could be ok. They might negate my concern about being unable to access them as youre then beholden to current interest rates without the option of moving to a better product down the line. 

Without a crystal ball I don't want to do wrong for them 

eskbanker

Andme1 said:

They're almost 4 and 1 so I'm worried Im a bit late to the sips party for at least the eldest but s&s JISAs could be ok. They might negate my concern about being unable to access them as youre then beholden to current interest rates without the option of moving to a better product down the line. 

Without a crystal ball I don't want to do wrong for them 

Not quite sure exactly what you're meaning, but just to be clear, JISAs (cash or S&S) are transferable from one product/provider to another if you choose to do so.

xylophone

youre then beholden to current interest rates without the option of moving to a better product down the line. 

It is possible to move from one JISA product to another.

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

Best cash JISA generally available at the moment  is from Coventry BS,

so I'm worried Im a bit late to the sips party 

Could you explain? I am assuming that you do not mean a pension for your child?

In terms of stocks and shares JISA, Fidelity and Hargreaves Lansdown have had favourable mentions.

Regarding investments,  a global tracker might suit?

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

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