Serious Post about MONEY

Ophie

I need some advice about money :eek: :eek: :eek:

I need to know the best account to save money for children. I've tried looking at Martin's advice but it just confuses me and the saving board aren't helpful at all!!!

I have a deposit of about £1500 to make and there will be month contributions probably above £100, so I can't have an account that caps the amount paid in. Obviously I'd like the best interest rate and I am slightly wary of the no withdrawal accounts, but if someone can persuade me that this is the way to go I'll do it.

I just want some advice without sarcasm, I'm trying to get this sorted so that grandparents etc can add to the account as well as me, so ideally I'd just like one account and not loads - unless this is the way to go... some grandparents aren't in this country so can't just go to a branch and open an account.

Graham_Devon

Do you want a trust fund, or just a normal savings account?

Ophie

normal savings, I think... I dunno. Whats the difference?

She has a child trust fund somewhere as well apparently

OddjobKIA

go to a proper finacial advisor.........

rdwarr

TBH I'm not sure that we're allowed to give financial advice here.

TheMysterious1

wrong forum....please post in the correct one

TheMysterious1

rdwarr wrote: »

TBH I'm not sure that we're allowed to give financial advice here.

any advice given is solely that persons opinion and does not form part of the collective opinion of mse. anyone can give advice....its up to the individual to make the right choice.

Graham_Devon

Child trust fund usually means she can't access the money at all until shes 18 or 21 depending on the account, but the interest rate is normally a couple of percent higher, and interest paid yearly, tax free.

Savings accounts can be very easy access, but to get the best rate you want one with the with the 'loss of interest for a month if a withdrawal happens' to get the best interest rate. A&L E Saver (Quidco for £20, it WILL work!!) or Abbey Saver both pay 6.5% monthly (which I believe is better, as you get interest on last months interest each month). The maximum for A&L is 75k, which you don't need to worry about.

If you withdraw in any calender month, you lose interest for the entire month. So if you want to make withdrawals frequently, they no good for you.

Otherwise theres the general savings accounts, around 6% at the moment which is just a savings account.

All of those can be accessed via usernames / passwords etc via the internet, so those you give the details to can log in and make a deposit as and when they wish. HOWEVER, you will need to create a load of direct debits for everyones accounts who wish to pay in, and they could accidentally choose your account from the list and send £100....too many mistakes could happen, so better to take the money yourself and add it on their behalf??

Best ones at the moment are those with the loss of interest if your withdraw in my mind.

Could always do what I do, keep a certain 'pot' of money in one savings account (in my case ICICI) and the main chunk of money in say A&L earnng better interest.

That way, I can withdraw from ICICI if I want to, but don't have to touch the A&L Easy Saver.

With every account you have to check every 6-12 months to make sure your still getting the best rate. I've just recently had to change from A&L Direct Saver to A&L E Saver. Direct saver WAS the best, but now the E Saver has come along they kind of forgot about the direct saver! Worse interest.

Certainly wouldn't let various people add money to the accounts though, too risky, not from a withdraw point of view, but the money coming out of the wrong persons account through a simple error in selecting which account.

Would be better to give them the BACS details of the account to which they can make a payment.

Graham_Devon

OddjobKIA wrote: »

go to a proper finacial advisor.........

For this amount of money its really not worth it. Maybe when its built up yes when shes a bit older, but not for what it is to start off with.

Ophie

TheMysterious1 wrote: »

wrong forum....please post in the correct one

Would you like to pull your finger out of your backside?

When did you become a mod? I have posted in the 'right' forum, but have had no responses that were of help a bit like here.

But thanks

TheMysterious1

Ophie wrote: »

Would you like to pull your finger out of your backside?

When did you become a mod? I have posted in the 'right' forum, but have had no responses that were of help a bit like here.

But thanks

ermmm yes it says savings account help above the door here :rolleyes: