Child savings

Julialuca

Hi, I’ve got 2 children both with about £3000 each in savings. I also save their child maintenance each month (around £80 each). I’m confused with all the advice on child savings. What is my best option for this? The money is currently in a random bank account of mine. Please can someone advise me what’s best?

Keep_pedalling

How old are your children?

xylophone

Hi, I’ve got 2 children both with about £3000 each in savings.

No

The money is currently in a random bank account of mine.

At the moment this money is yours since it is not in an account in the children's own names or in accounts held in bare trust for them.

If this is money which has been given to the children  then it should be in accounts in their names.

I also save their child maintenance each month (around £80 each)

This is your money and you can decide what you want to do with it.  You may wish to keep it in your own name (while regarding it as 

earmarked for the children at some point in the future).

You may wish to gift it to the children now - if you do so, you may wish to  open a JISA for each  in view of the £100 rule  relating to 

income arising on parental gifts to their unmarried minor children which does not apply to gifts into JISA.

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

https://www.gov.uk/savings-for-children

https://moneyfactscompare.co.uk/isa/junior-isas/

https://moneyfactscompare.co.uk/savings-accounts/childrens-savings-accounts/

https://www.gov.uk/hmrc-internal-manuals/trusts-settlements-and-estates-manual/tsem4310

If you opt for a stocks and shares JISA, Fidelity and Hargreaves Lansdown have received favourable mentions on the forum.

https://forums.moneysavingexpert.com/discussion/comment/80935478/#Comment_80935478

Julialuca

Keep_pedalling said:

How old are your children?

They are 4 and 7

Nurse2047

I would start a Fidelity or Vanguard JISA and invest in monthly a global fund like FTSE global all cap for example. Also if you wanted to however many question if this is the right thing to do.. a pension. I set up Fidelity junior SIPPs and just add £25 pm.