Bank account for my one year old - who has ownership over his money?

rachel2512

I’ve been putting some money aside for my child who is 13 months old. I set him up with a Halifax Kids Monthly Saver as this was the best rate for 1 year. The money has now been automatically transferred into a Kids Saver with a much lower rate but I really want to get the most interest out of this money before he’s an adult. I’ve been looking around for the best rate and have realised that actually, I would probably be better off setting him up with a Cash ISA or a Stocks and Shares ISA in my name. I don’t currently have an ISA myself and am therefore not using my own yearly tax-free allowance.

Can I take the money I’ve already put into his Kids Saver to do this, or does this money now belong to him and I cannot legally move it into an account under my name? In which case, am I best leaving that money alone and starting up my own separate savings account from scratch, in my name, with the intention of gifting this to him when he’s older?

eskbanker

From a legal perspective, money in his name is indeed his and so you can't move it to an account in your name.

It would probably be worth exploring Junior ISAs, especially the S&S variant for a long-term commitment.

bioboybill

Hargreaves Lansdown offer a Junior Stocks and Shares ISA with no platform fees. You can put up to £9000 a year into it.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81877274#Comment_81877274

So do Fidelity. With both there is still a fee for the actual investment funds chosen of course.

Junior ISA | Invest in a Junior Stocks and Shares ISA | Fidelity

OP- Normally better to put the money in S&S when you are looking long term.

DavidT67

HL JISA has no trade fees either, FI JISA charges for stock trades.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81877571#Comment_81877571

That is true, but away from the rarified atmosphere of an investment forum, most people only ever invest in funds, where there is no buying or selling charges with either platform.