Child ISA?

[S10GTA]

My son has been given a gift to put away till he is 18, with the idea people can add to it. Is there an isa that is better than another currently? I have heard that Halifax offer a better rate if the parent has an account too. I too am able to invest several grand, but would like to have access should I need it.

Give me your knowledge clever people!

[Newc]

I'm not aware of any ISA paying much over 2%. You can maybe get 2.2% if you shop around and go for a multi year lock in. That's at least 1% under inflation so by the time the nipper is 18 he'll have at best 80 pounds for every 100 you put in.

Child ISAs can hold securities, and over the timescales you are talking about that's a better bet than holding cash. Put in a low cost tracker and add to it as you go.

Alternatively a case of en primeur Chateau Lafite each year. If the worst happens and the price tanks then at least you'll have a few hundred bottles of wine to soften the blow.

[Nigel H]

If you have a Halifax ISA then you can have a Junior ISA with the Halifax that pays 6%. We have one, and no one can touch this rate. It's a branch only account, so is a bit of a pain to run.

Money locked in till they are 18, at which point it becomes theirs

[Jockman]

I took out a pension for my grandson when he was one month old (now 2 years). He now has a fund in China, gets 20% from the Govt to add to my contribution every month, and he can't get hold of the money at 18 years of age

[no effort]

Annoyingly most childrens savings accounts are branch only.

Halifax also offer a good non isa savings account for children at 3%.

[mountview]

Why would you buy an ISA for a child? They dont pay tax anyway.

[S10GTA]

mountview said:

Why would you buy an ISA for a child? They dont pay tax anyway.

Good point. I put it in a child savers account @3% in the end.

[Nigel H]

mountview said:

Why would you buy an ISA for a child? They dont pay tax anyway.

If the parent puts the money in a normal savings account and it earns more than £100 per in interest then it's taxable. Not so for other who save for the children e.g. Grandparents. If the money goes into an ISA this rule doesn't apply.