How to save for uni for my 4 kids

Torontofemale

I have 4 kids aged 8 - 13 and have £20k saved so far across 4 x Santander Mini accounts in each of their names plus 2 x regular savings accounts in my name. None of which are earning me particularly good interest. I'm also aware of the Tax implication as I'm a higher earner.

Does anyone have any advice for the best kind of accounts. Ideally I wouldn't want them to be able to access them. I'm aiming for £20k for each kid and have worked out that I need to be putting away around £700 a month to get to roughly that amount for them all turning 18. 

lon_don

What are Mini accounts ? Why not use JISA ?

Albermarle

For the accounts in your name you should be putting the max £20K per tax year into a cash ISA to protect the interest from tax.
Any accounts in their name they will legally have access to at 18. If you do not want this you need to keep the money in your name ( or a partner/spouse if you have one ).

plus 2 x regular savings accounts in my name. None of which are earning me particularly good interest.

Seems odd, normally a regular saver pays good interest ; 6 even 7 % .

Middle_of_the_Road

Albermarle said:

For the accounts in your name you should be putting the max £20K per tax year into a cash ISA to protect the interest from tax.
Any accounts in their name they will legally have access to at 18. If you do not want this you need to keep the money in your name ( or a partner/spouse if you have one ).

plus 2 x regular savings accounts in my name. None of which are earning me particularly good interest.

Seems odd, normally a regular saver pays good interest ; 6 even 7 % .

Possibly regular being ordinary. Often confused.

longestgame

I am using the ISA (in my name) route as well, predominantly to save for college contribution and house deposit.

And not telling our child about its existence, ever, until the time is right. If they turn out terribly, I am going on a fabulous holiday.

HedgehogRulez

Torontofemale said:

I have 4 kids aged 8 - 13 and have £20k saved so far across 4 x Santander Mini accounts in each of their names plus 2 x regular savings accounts in my name. None of which are earning me particularly good interest. I'm also aware of the Tax implication as I'm a higher earner.

Does anyone have any advice for the best kind of accounts. Ideally I wouldn't want them to be able to access them. I'm aiming for £20k for each kid and have worked out that I need to be putting away around £700 a month to get to roughly that amount for them all turning 18. 

How irregular 

Albermarle

longestgame said:

I am using the ISA (in my name) route as well, predominantly to save for college contribution and house deposit.

And not telling our child about its existence, ever, until the time is right. If they turn out terribly, I am going on a fabulous holiday.

Letting them have some money to blow can give a good lesson in ' when it's gone it's gone' 
But keeping some in your name in reserve is probably a good idea.

Torontofemale

hi - thanks for your comments. Regular = ordinary. 

Torontofemale

so JISA / ISA sounds like best options for the amount of money

kempiejon

longestgame said:

I am using the ISA (in my name) route as well, predominantly to save for college contribution and house deposit.

And not telling our child about its existence, ever, until the time is right. If they turn out terribly, I am going on a fabulous holiday.

If they turn out terribly? You mean they are inadequately provisioned? I understand kids don't just appear at college age, they are directed, don't sell yourself short.

Unless secretly you're angling for the lifetime holiday.

saajan_12

Torontofemale said:

Ideally I wouldn't want them to be able to access them. 

If you want to give the money for a specific purpose, then either keep it in your name and pay directly for the purpose you had in mind, or put it into a trust. 
If not, the money will be legally theirs at 18 and you won't likely even be able to sign for it etc come 18 to get it back without telling (asking) them. 

Once you decide on the above, then find a comparison site for the best interest rate, incorporating tax. Can use eg premium bonds, ISAs etc to avoid tax, but another account might have higher interest even once you take off tax. If you're thinking about £700 a month, that could be easily covered with 3 regular savers, paying high interest rates. It will mature at the end of the year, at which point you can put it in the highest interest normal account.