Childs Savings - advise needed

buba2006

Hi there

I have a Halifax save4it for my son, which i think he has around £550 saved. My question is should i leave the £550 in that account or move £500 to another account as i do not expect to use this money in the near future. My son is 22months. I'd leave the £50 and build to it using the save4it account.

If i should put the £500 into another account which type should i use?

I don't know what's best for long term saving.

Any advice would be appreicated.

Mikeyorks

He should have a CTF - which might be a better place for the £500? The Sav4it has been a casualty of Halifax interest reductions - so it's not the best. Bit more detail on the CTF here :

http://www.moneysavingexpert.com/savings/child-trust-fund-vouchers

For longer term savings you can't better the Halifax 10% Regular Saver account ... in particular if the money you put into it is 'new money' as opposed to re-cycled money. But you have to put in between £10 (min) and £100 (max) per month. At the end of each year the account empties into the Sav4it ... and you can either leave it there or move it to the CTF.

Bit of info on the Halifax 10% + other stuff in here :-

http://www.moneysavingexpert.com/savings/child-savings-tax-free

PS .... make sure you have an R85 filed on the Sav4it and any other accounts in his name - in order to get tax free interest? It's not automatic (but should be on the CTF)