Investing in Childs future

hushpuppy

Hi,

I have been asked by a friend who doesn't have a PC to pose the following question and hope you good people can help?

My friend has just had a baby and would like to invest the money she receives in government allowances (topped up with whatever she has spare every month) for her baby as a nest egg (not to be used before she is 18).

Can anyone please suggest a suitable saving vehicle(s) to do so, whch will clearly give her the best (current) returns and also is tax efficent?

Kind Regards:A

jo_b_2

Hi hushpuppy

I'd recommend the Halifax Children's Regular Saver, if she's looking to pay money in every month.

This thread looks like a similar request to yours so might be useful:
http://forums.moneysavingexpert.com/showthread.html?t=994391

Mikeyorks

She has to open a Child Trust Fund to deposit the £250 she will get from the Govt. Thereafter it's a choice as to whether to add to that (it's in the child's name) or keep saved money separately ... and possibly under the parent's jurisdiction? In the latter case an ISA is ideal .... if either parent doesn't utilise their own allowance - as it removes tax issues.

The Halifax 10% account is an ideal vehicle to put new money through ... then put the proceeds somewhere else at the end of the year (then it starts over again). But have a look at the comprehensive CTF article here :-

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

..... making sure you open and read the .PDF link that's after the first para or so. Personally, with 18 years to go, I would open an Investment CTF (not a savings one) as it should perform much better over the period - if chosen wisely.

dunstonh

You mention invest and save in the same post. Which is it that you want it to be?

hushpuppy

dunstonh wrote: »

You mention invest and save in the same post. Which is it that you want it to be?

Oopps sorry I seem to have fallen into a trap where I suppose I mean the same thing. I want to save as much as I can (probably only Child Benefit for the time being) and invest it to give her the best investment possible for her start in life (18+!)

hushpuppy

Dear All,

Further to my oroginal post. my friend now has her first £250 cheque from the government to set up Grace’s child trust fund. We have both been looking into the various trust funds and suggestions as above but she is just not sure what one to invest the money in and also who with.

They appear to all be similar to ISA’s where every year they can be moved to a different provider. She is thinking Stakeholder as I would hope that share prices will recover in 18 years and should make a nice little nest egg for Grace but again would like everyones thoughts, do you think she should talk to a financial adviser?

Thanks