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  • FIRST POST
    • MummyD
    • By MummyD 3rd Nov 17, 6:49 PM
    • 128Posts
    • 1,541Thanks
    MummyD
    Where to save for children’s uni fees
    • #1
    • 3rd Nov 17, 6:49 PM
    Where to save for children’s uni fees 3rd Nov 17 at 6:49 PM
    Hi - first time poster on this board and am looking for some help. DH and I have finally got our head around the fact that our little children are not so little any more and we really ought to start thinking about putting some money away to cover university expenses.
    We currently have commitments but in a few months’ time we’ll be in a position to put Ł250 a month towards this expense. We won’t need to touch it for six years (oldest has just started senior School). My question is - what savings/investment vehicle is best for this kind of regular saving that we’ll need to access after 6 years? We currently only have cash savings accounts so no other savings/investments. We’re real newbies!
    Thanks in advance for any advice.
Page 2
    • cloud_dog
    • By cloud_dog 6th Nov 17, 4:31 PM
    • 3,685 Posts
    • 2,185 Thanks
    cloud_dog
    So what are Children's Bank Accounts?
    Originally posted by Wobblydeb
    They are a type of financial bare trust account for a minor (under 18). Accounts like these may have a debit card for example as the child is older and more responsible in managing money/transactions.

    I commented on another child/savings thread (I've added 'Bare Trust' for clarity):

    This is a critical consideration and often overlooked.

    My DD is older than yours but we have...
    1. Savings account in DD name (Bare Trust)
    2. Stocks and shares CTF (forerunner of JISA)
    3. Easy access account (for birthday/xmas gifts etc), in DD name (Bare Trust)
    4. Investment account in OH name, which we control, allocated for DD
    Originally posted by cloud_dog
    Basically accounts 1, 2, and 3 belong to our DD, account 4, where the majority of money is, belongs to us and is allocated to be used for the benefit of our DD.

    Unsure if a CTF/JISA comes under the bare trust banner or if it has its own legal status?
    Last edited by cloud_dog; 06-11-2017 at 4:34 PM.
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
    • jenni_fer
    • By jenni_fer 16th Dec 17, 11:14 PM
    • 152 Posts
    • 696 Thanks
    jenni_fer
    Exactly this situation, regular savers x2 with the prior year amounts in at 2%

    With the current low interest rates, it will be a while before you need to worry about the Ł100 interest limit. Plus, you'll only pay tax if you are also over your own personal savings allowance https://www.gov.uk/savings-for-children

    Use regular savers or current accounts initially while the pot builds up. Either the Nationwide accounts mentioned by xylophone, or Halifax have some kids accounts at good rates. 4% regular saver (up to Ł100 / month) and 2% instant access (up to Ł20,000 although you hit the Ł100 total interest limit when you've got Ł3.1k in there and are making Ł100 / month saving).
    Originally posted by Wobblydeb
    • jenni_fer
    • By jenni_fer 16th Dec 17, 11:17 PM
    • 152 Posts
    • 696 Thanks
    jenni_fer
    Agreed, but I'm likely to have a good idea well in advance and be able to do something with it accordingly, plenty of opportunity to find other things for them to spend it on on their behalf...

    This applies to the OP also...

    Jenn_ifer, you do realise that (based on what you have shared) the money you have accumulated appears to be in a bare trust for the child; the money belongs to the child; and is their responsibility at age 18 (in England).

    I appreciate that this comes off as a little bit 'scaremongering' but if the child (18) chooses to blow the money on having a good time you have no control over that.

    People really need to consider the potential implications of their actions. If you want a say/control over how the money is used you either need to go down the route of creating an appropriate trust (discretionary for example) or retain it under your own name; or some mixture.
    Originally posted by cloud_dog
    • jenni_fer
    • By jenni_fer 16th Dec 17, 11:19 PM
    • 152 Posts
    • 696 Thanks
    jenni_fer
    Apologies for replying to these as I come to them (and so many weeks down the line)

    In theory yes, but having lost out when the markets crashed post 9/11 I'm way too risk adverse for stocks and shares at the moment.


    If you are planning for money you'll need in 10+ years then investments are really the way to go not cash savings. If you use a S&S ISA then you won't be subject to any income or capital limits other than the Ł20k per year investment limit.
    Originally posted by jimjames
    • atush
    • By atush 17th Dec 17, 9:47 AM
    • 16,690 Posts
    • 10,398 Thanks
    atush
    How did you lose out? Did you pull out of the market?

    I was invested then, and all mine recovered. Plus I bought more at knock down prices and made a lot. Got BA as a penny share.
    • jenni_fer
    • By jenni_fer 17th Dec 17, 10:11 PM
    • 152 Posts
    • 696 Thanks
    jenni_fer
    The event the money was invested for (my university fees)
    happened, less came out than originally went in. Bad timing but enough to make me wary.
    How did you lose out? Did you pull out of the market?

    I was invested then, and all mine recovered. Plus I bought more at knock down prices and made a lot. Got BA as a penny share.
    Originally posted by atush
    • elephantrosie
    • By elephantrosie 18th Dec 17, 7:09 AM
    • 425 Posts
    • 121 Thanks
    elephantrosie
    i was going to suggest investment as well, like the others have done.

    250 quids monthly x 6 years really is not going to be enough for university these days. (sorry to be harsh)

    you may look for lower risk investments. individual stocks picking are by far one of the riskiest investments, and should only be reserved for experienced investors (IMHO). try ETFs, forex robo-advisors, etc?
    Another night of thankfulness.
    • elephantrosie
    • By elephantrosie 18th Dec 17, 7:11 AM
    • 425 Posts
    • 121 Thanks
    elephantrosie
    education is getting more expensive with time and the prices is likely to go up by the time your little ones go for theirs.

    i honestly feel education is the best gift my parents have given me, after their unconditional love and care.
    Another night of thankfulness.
    • atush
    • By atush 18th Dec 17, 12:50 PM
    • 16,690 Posts
    • 10,398 Thanks
    atush
    The event the money was invested for (my university fees)
    happened, less came out than originally went in. Bad timing but enough to make me wary.
    Originally posted by jenni_fer

    If the money was for a specific time period that close, it should never have been invested.

    Money is invested for the long term, and cash fund for emergencies, so you dont have to sell in a crash, is needed.

    If you had done this properly, you could have waited for market recovery.

    So there is no problem with the markets per say, just you investing money needed in t he short term, and not having enough emergency cash.
    • atush
    • By atush 18th Dec 17, 12:52 PM
    • 16,690 Posts
    • 10,398 Thanks
    atush
    i was going to suggest investment as well, like the others have done.

    250 quids monthly x 6 years really is not going to be enough for university these days. (sorry to be harsh)

    you may look for lower risk investments. individual stocks picking are by far one of the riskiest investments, and should only be reserved for experienced investors (IMHO). try ETFs, forex robo-advisors, etc?
    Originally posted by elephantrosie
    6 years is a shortish time, but if invested monthly it can buy more investments during a downtorun.

    I would advise investment trusts with a good long term income record.
    • Eco Miser
    • By Eco Miser 19th Dec 17, 1:41 PM
    • 3,444 Posts
    • 3,234 Thanks
    Eco Miser
    6 years is a shortish time, but if invested monthly it can buy more investments during a downtorun.

    I would advise investment trusts with a good long term income record.
    Originally posted by atush
    Six years is a very short time for dripfeeding an investment. At some point you need to switch from investing to saving the new contributions (four years from the time you'll be cashing in? five?), and possibly switch the whole investment into cash or near cash to protect from a crash just before it's needed.
    Eco Miser
    Saving money for well over half a century
    • louloubelle79
    • By louloubelle79 12th Apr 18, 12:13 PM
    • 326 Posts
    • 164 Thanks
    louloubelle79
    Bumped this post as trying to find best option to pay into for my children’s Uni fees. Children age 7 and 9. I have a Santander mini account for them both; Santander JISA and Vanguard S&S JISA. When the mini account reaches Ł2000 ( max for 3%) I transfer this into their JISA. I have been doing this past year; is this the best thing to do?.

    Have set up ISA with Vanguard in my name to now add to so I have control of the money once they reach 18 also.

    Any advice offered?
    • MallyGirl
    • By MallyGirl 12th Apr 18, 12:34 PM
    • 2,674 Posts
    • 7,675 Thanks
    MallyGirl
    My DD is too close to uni now for S&S but I did put the child benefit in a S&S ISA (in my name) for a number of years - until I wanted to use the ISA allowance for myself. Then Halifax cash JISA was offering 6% so the bulk of the money went there - sadly it is down to 3% these days but still not bad. She will get control of it at 18.
    DD has a Santander mini 123 at 3% which gives access to a 5% regular saver for Ł200 pcm. It is her bank account and pocket money goes in here by SO.
    Unbeknown to her she also has a Halifax RS at 4.5% on Ł100 pcm (last year of this as she is 16 now) and a Nationwide FlexOne RS at 3.5% on Ł100 pcm (can keep going to 23). Quite a lot of the money being cycled through the RS will go to her at 17 for driving lessons/car insurance. Her grandparents gave her Ł1000 at birth for that purpose and it will be worth around Ł2250 by then.
    I also put Ł100 in an Orbis JISA to get the Ł100 bonus - just a bit of fun.
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