help about savings for kids

diane70

Hi
I have a 2 year old who has the £250 bond the goverment gave her etc, ( put in in abbey kids savings) I also have a 10 year old who I haven't put any money away for, I would like to start putting about £5 each a week maybe more but which one is best?
Would an ISA be ok or kids savings?????? I am confused about the interest rates the amounts and ages etc etc etc
hope someone can help!

Meltdown_2

Many accounts designed specifically for children offer very good rates of interest.
You can open most of these on their behalf, and pay money into them in various ways.
Use one of the savings comparison sites (such as moneysupermarket - see forum header above, under the red 'start here' marker) to get up-to-date info.

ISAs are not available to under-16's.

martinman3

Just to add, as almost all children have an income of less than their personal allowance of approx £5k the interest on their savings can be paid gross.
All you need to do is compare the AER rates of childrens accounts with the AER for the ISAs. ISAs would only be sensible for a childs savings if you are not likely to contribute the maximum possible out of your own savings.

A lot has been said about Childrens Regular Savings accounts, particularly from Halifax, and should say that I don't like them because of the conditions which, if broken, cause you to lose interest and if you have weekly amounts to save then you must wait and save a months worth all at once, while you wait you are probably getting a low rate on it.