Saving Accounts

svhpsl

I'm looking for a savings account where I can invest in the region of £100 per month to pay for my kids uni education (should they choose to go, failing that then hopefully a deposit for there first flat).

I don't really want to do in the kids name because they could potentially turn round and blow the whole lot when they are 18.

The problem with the accounts that I've seen is that they do good deals for 2 or 3 years. Is there such a saving account where the interest rate is linked to the Bank of England rate? I suspect the answer is no but hear is to hoping.

Regards

Aegis

Most non-fixed rates are indirectly linked to the BoE base rate.

How old are your kids? If they're still quite young it might be worth putting some of the money into asset-backed deposits (e.g. stock market units) to maximise the growth potential for a few years before switching to a less volatile option closer to the time they go to university.

Of course, if they have less than 5 years to go, this is a moot point!

svhpsl

Thanks for that he is only very young and I will certainly look at stock market units or something similar for about 10 years before transfering the money into a less volitile option such as a savings account.

Regards

Mikeyorks

svhpsl wrote: »

I don't really want to do in the kids name because they could potentially turn round and blow the whole lot when they are 18.

Very sound decision. Only problem is that it potentially leaves a loss on the tax on the interest ... if you're a taxpayer? File an R85 to get gross interest if you're not .. and opt for a standard account.

Otherwise (if you don't already use one .. or do, but don't use above 60% of your allowance) - put it in the best ISA that will accept monthly payments. If you do combine it with one you use (you can't contribute to more than one cash ISA) just keep a running note of the proportion proper to the children?