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Saving for child and tax benefits

Hi All,

Looking for some advice about saving for a child. Partner and I just had our first child, and I'm looking to put away some money (c£100) every month for her. I also need to arrange for the child benefit to go into an account. We would like to save this benefit income aswell.

My partner and I both currently have Santander 123 accounts and we don't use the full £20k each at 3%. I'm wondering if I set up the child benefit to go into this account and then put our own £100 in either a ISA ( we would like to be responsible for this until we decide to give her the money, so not sure if this rules out junior ISA? I'm not using my ISA for this year so could put it in there? Or I see Halifax has 6% kids saver up to £1200?

Not sure what option to go for and what would be best?
Any advice would be great.
Thanks

Comments

  • xylophone
    xylophone Posts: 45,933 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    A JISA belongs to the child absolutely and he/she can have control at 16 and full access at 18.

    https://www.gov.uk/junior-individual-savings-accounts/overview

    The money in the Kids' regular saver also belongs to the child.

    Once matured you would transfer to another account in your child's name - you can hold this in bare trust but the child has the right to access and control at 18 (16 in Scotland).

    http://www.halifax.co.uk/savings/accounts/junior-savers/

    If you prefer to keep control of the money, you can certainly save in your own accounts but remember that should you fall on hard times and require means tested benefits, the savings would be taken into account as you would be the legal and beneficial owner of the money.
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