childs saving account

fuzzylu

sorry i do not post on hear much but am a regular reader. this site has been very helpful to read, i am just sorry i am not knowledgeable to post advice myself.
My brother and his girlfriends baby boy is due in 6 weeks time, i would really like open a savings account for the baby, i was wondering if you guys would be able to point me in the direction of the best account to do this.
also as the baby's aunt and not a parent can i open an account without telling my brother (i would like this to be a surprise.)

thanks in advance

xxx

baby_boomer

Hi fuzzylu and welcome to the site .

You would need the birth certificate so it is unlikely that you will be able to spring a surprise.

Year on year the best paying cash accounts are cash child trust funds into which family and friends can contribute up to £1200 per year so financially it is probably best to co-ordinate your efforts with your brother.

The government provides a £250 voucher in the first year which goes to the child's parents to get things going.

However there is a Halifax 10% Regular Saver account into which any relative can contribute up to £100 pm (you have to save regularly). The proceeds at the end of the year go into a Halifax Save4it account which is currently paying a respectable rate.

fuzzylu

thank you for replying, i will have a think about whats best to do


xx

Mikeyorks

Article here to help the thinking :-

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