? child saving account for £400

ed2712

Hi we have £400 to invest for our son, present from his grandparents, could someone please advise best place to invest for a child saving, Many thanks.

notis7

childrens regular saver - Halifax......10% - Halifax and Nationwide have generally the best return on their childrens products

martinman3

Sorry to disagree but a regular saver is not a good idea if you have a lump sum as you will not get the quoted AER on the full amount but only on the monthly contributions. The actual return you will get is half the quoted AER figure if you spread the contributions over the year.

Also, if we are talking about branch based accounts, Chelsea BS Ready Steady Save 5.70% and Yorkshire BS One Day/Freedom 5.65% both beat Halifax Save4It 5.55% and Nationwide BS Smart 5.52%.:p

Yorkshire BS also have their Treasure Bond, open one this month and get 6.00% fixed for one year, then close it or stay for another year at a new rate. :cool:

Aegis

martinman3 wrote: »

Sorry to disagree but a regular saver is not a good idea if you have a lump sum as you will not get the quoted AER on the full amount but only on the monthly contributions. The actual return you will get is half the quoted AER figure if you spread the contributions over the year.

True, but if you drip feed from a high interest savings account with monthly interest into a regular saver, you'll get the best of both worlds.