Any recommendations on best account / isa to setup for child

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stressedbrian
stressedbrian Posts: 37 Forumite
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in Savings & investments
Hello folks,

we have not long had a baby and I would like to set-up an account(s) for her initially a savings account and an isa as well.

Are there any good deals or offers just now or any recommendations?

We are in Scotland if that swings things any way.

Any help greatly appreciated.

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  • edinburgher
    edinburgher Posts: 13,462 Forumite
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    Hi Brian.

    Not so much a recommendation (because interest rates don't seem to be great at the moment), but if this is for long term savings/school fees/a nest egg, I'd recommend the best rate cash account you can get (if you think you really need to save cash) and either a JISA or a S&S ISA of your own to invest for your daughter's future. I don't recommend saving cash over 18 years, it will be nibbled away at by inflation.

    This is the route that we took. Family gifts are stashed at 4% in a cash JISA and we invest through our own ISAs in a well diversified index fund (one of the Vanguard Life Strategy products). Hopefully we'll have enough that she can buy her own place one day and let me have a lie in :D

    Nationwide are offering 3.25% on cash.
  • stressedbrian
    stressedbrian Posts: 37 Forumite
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    Thanks very much, truthfully I hadn't considered the effect of inflation on cash savings (not getting much sleep - new baby and all - just now so brain isn't quite in gear).
    Would you keep clear of the stock and shares type isa over cash?

    Also I don't recognise any of the JISA providers is there any that are better or more established?
  • xylophone
    xylophone Posts: 44,412 Forumite
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    https://www.gov.uk/junior-individual-savings-accounts/overview

    Remember that the child has the right to control at age 16 and access at age 18.

    Re cash JISA

    http://www.moneysavingexpert.com/savings/junior-isa

    Stocks and shares? Hl offers excellent service, information and website but is not the cheapest platform.

    Charles Stanley often gets a favourable mention.
  • jimjames
    jimjames Posts: 17,619 Forumite
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    stressedbrian wrote: »
    Would you keep clear of the stock and shares type isa over cash?

    No, the opposite. I'd avoid cash and go for stocks and shares option instead.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • xylophone
    xylophone Posts: 44,412 Forumite
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    Recent thread http://forums.moneysavingexpert.com/showthread.php?p=71176540#post71176540
  • Alice_Holt
    Alice_Holt Posts: 5,949 Forumite
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    When my neices where born, I set up a Investment trust child savings plan (in a bare trust) for them, and made monthly subscriptions for 13 years.

    One of my picks was Scottish Mortgage:
    https://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=ITSMT&univ=T

    When they passed the age of 13, I made payments into Building Society children accounts for them. The intention being that they would have a cash sum readily assessible at 18 for uni etc. (Plus a period shorter than 5 years becomes more risky for S&S investments).

    Now aged 17 & 22, they have over £30k each to their name.
    Rather more than I expected (due to the spectacular performance of SMIT), I can only hope the 17 year old is as sensible as the 22 year was with this money.

    Nowadays, a JISA is likely to be the better wrapper.
    Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.
  • edinburgher
    edinburgher Posts: 13,462 Forumite
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    jimjames wrote: »
    No, the opposite. I'd avoid cash and go for stocks and shares option instead.

    Agreed - over time DD will have mostly S&S.
    Thanks very much, truthfully I hadn't considered the effect of inflation on cash savings (not getting much sleep - new baby and all - just now so brain isn't quite in gear).

    Best of British - DD is 15 months and I still feel like that! :rotfl:
  • luke222010
    luke222010 Posts: 84 Forumite
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    Hi stressedbrian!

    Just gotten round to looking at this again, after (like you I would expect) a rather sleepless couple of months!
    I haven't yet made a decision on what to invest in, but have been putting money away each month ready to invest an initial lump sum, and then equal amounts each month from thereon.

    Just wondering if you have invested yet, and if so, what platform and fund did you go for?

    Cheers,
    L.
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