Savings account for our newborn

Beckyd_90

we have had a baby 2 weeks ago and want to set up a savings account for him

Looking at putting away approx £50 per month for him to be able to access once he's 18 for a car/towards a deposit etc.

Any ideas where is the best place to do this please? 

All advice appreciated 

TheSpectator

Have you considered a Junior ISA - https://www.moneysavingexpert.com/savings/junior-isa/

Keep_pedalling

I would second a JISA, and with 18 years of growth potentiometers I would go with a S&Ss ISA rather than a cash one. 

Bigwheels1111

Whatever you do make sure you teach them about money, saving and spending.

Or at 18 they will get the cash and blow it all.

eskbanker

Keep_pedalling said:

I would second a JISA, and with 18 years of growth potentiometers I would go with a S&Ss ISA rather than a cash one. 

The JISA suggestion won't get any resistance from me but OP probably hasn't identified a future career as an electrician for him at this stage

Keep_pedalling

eskbanker said:

Keep_pedalling said:

I would second a JISA, and with 18 years of growth potentiometers I would go with a S&Ss ISA rather than a cash one. 

The JISA suggestion won't get any resistance from me but OP probably hasn't identified a future career as an electrician for him at this stage

Bloody autocorrect 😂

singhini

I would split the money £20/£30 and put it into both a JISA and Junior-SIPP so you have both medium term and long term investments. 

Option 1 = JISA (Tax Free savings for 18 years). As previously suggested, i too would consider a S&S JISA. 18 years later they have access to the money if they need it, or can continue to save inside this tax free wrapper. 

Option 2 = Junior-SIPP
You put £30 in and will receive £7.50 tax relief so = £37.50 per month goes in which can be invested similar to option one (downside is you can't touch the money untill retirement age so that's currently around 55, however with 55ish years of potential investment growth and the tax relief your getting this will hopefully grow to a fantastic pension pot).

Also both options have some flexibility i.e. they can be started or stopped anytime, aswell as the amount of money your paying in can be increased or decreased on a monthly basis if need be.

artyboy

singhini said:

I would split the money £20/£30 and put it into both a JISA and Junior-SIPP so you have both medium term and long term investments. 

Option 1 = JISA (Tax Free savings for 18 years). As previously suggested, i too would consider a S&S JISA. 18 years later they have access to the money if they need it, or can continue to save inside this tax free wrapper. 

Option 2 = Junior-SIPP
You put £30 in and will receive £7.50 tax relief so = £37.50 per month goes in which can be invested similar to option one (downside is you can't touch the money untill retirement age so that's currently around 55, however with 55ish years of potential investment growth and the tax relief your getting this will hopefully grow to a fantastic pension pot).

Also both options have some flexibility i.e. they can be started or stopped anytime, aswell as the amount of money your paying in can be increased or decreased on a monthly basis if need be.

Ok so firstly there is no such thing as a 'Junior' SIPP, that's just marketing gimmickry.

But far more importantly, unless you are in the fortunate position to fully max out a JISA, as well as making provision for education, housing and other more immediate costs for your offspring; putting money away into a SIPP that will be subject to the whimsical rule changes of successive governments for the next 60 years is, frankly, nuts. 

Newbie_John

£50 x 12 = £600
£600 x 18 = £10800

So not really enough for Premium Bonds - with lower amounts the winning chances are lower too.

Other options I would consider - overpay mortgage - especially if close to 18 years left - then pay him for the last few months.

Open personal ISA if you think you may need any money before he turns 18.

singhini

artyboy said:

singhini said:

I would split the money £20/£30 and put it into both a JISA and Junior-SIPP so you have both medium term and long term investments. 

Option 1 = JISA (Tax Free savings for 18 years). As previously suggested, i too would consider a S&S JISA. 18 years later they have access to the money if they need it, or can continue to save inside this tax free wrapper. 

Option 2 = Junior-SIPP
You put £30 in and will receive £7.50 tax relief so = £37.50 per month goes in which can be invested similar to option one (downside is you can't touch the money untill retirement age so that's currently around 55, however with 55ish years of potential investment growth and the tax relief your getting this will hopefully grow to a fantastic pension pot).

Also both options have some flexibility i.e. they can be started or stopped anytime, aswell as the amount of money your paying in can be increased or decreased on a monthly basis if need be.

Ok so firstly there is no such thing as a 'Junior' SIPP, that's just marketing gimmickry.

But far more importantly, unless you are in the fortunate position to fully max out a JISA, as well as making provision for education, housing and other more immediate costs for your offspring; putting money away into a SIPP that will be subject to the whimsical rule changes of successive governments for the next 60 years is, frankly, nuts. 

I WAS VERY CLEAR ................ "I would"

If you  "Wouldn't"    thats your choice!!!

Governments can change policy on alot more than just SIPP's over the next 60 years............ You can message me privately outlining what your concerns might be!!!

daveyjp

No need to complicate matters.  A Junior S&S ISA does the job.  I'd also increase contributions each year to counter inflation.