Children's savings accounts?
Discussion
Having very recently become a father for the first time, I am looking at Children's savings accounts and I am wondering where is best to put my money for the long term.
I have noticed the Halifax is offering a fixed 6% savings account which I can pay up to £100 per month into. This appears far better than any other savings accounts I have seen, however, the down side is the money is locked away until the child's 18th birthday. Therefore I understand I am gambling on other types of savings or investments not bettering that interest rate out to 2031. I have also noted its a branch only account, but this doesn't really bother me.
Is there a better place for my money or is this as good as it gets at the moment? Thanks in advance!
I have noticed the Halifax is offering a fixed 6% savings account which I can pay up to £100 per month into. This appears far better than any other savings accounts I have seen, however, the down side is the money is locked away until the child's 18th birthday. Therefore I understand I am gambling on other types of savings or investments not bettering that interest rate out to 2031. I have also noted its a branch only account, but this doesn't really bother me.
Is there a better place for my money or is this as good as it gets at the moment? Thanks in advance!
Child Investment Trusts, that is where i would be going. You have 18+ years so can afford to take some risk. If you are onshore I would create a trust structure to avoid any capital gains on maturity.
This site is good to help with your selection:
http://www.trustnet.com/Investments/Perf.aspx?ctr=...
F&C have a reasonable selection and are easy to deal with:
http://www.fctr.co.uk/child-saving/savingsplans/ch...
As do Aberdeen:
http://www.invtrusts.co.uk/aam.nsf/InvestmentTrust...
Have a read.
This site is good to help with your selection:
http://www.trustnet.com/Investments/Perf.aspx?ctr=...
F&C have a reasonable selection and are easy to deal with:
http://www.fctr.co.uk/child-saving/savingsplans/ch...
As do Aberdeen:
http://www.invtrusts.co.uk/aam.nsf/InvestmentTrust...
Have a read.
Where does it say the money is locked away until the child's 18th?
http://www.halifax.co.uk/savings/accounts/branch-a...
"After 12 months your Kids' Regular Saver account will become a variable rate easy access account that we offer at the time. We'll write to you before the 12 months are up to remind you."
http://www.halifax.co.uk/savings/accounts/branch-a...
"After 12 months your Kids' Regular Saver account will become a variable rate easy access account that we offer at the time. We'll write to you before the 12 months are up to remind you."
IIRC Halifax do 2 accounts - the Regular Saver and the Junior ISA.
What the OP is describing sounds like the ISA. To qualify for the 6% rate you'll need to have an ISA with the Halifax. The rate could get changed at some point, but it's been 6% since launch.
One other point at 18 when the account matures the money then becomes the childs...
What the OP is describing sounds like the ISA. To qualify for the 6% rate you'll need to have an ISA with the Halifax. The rate could get changed at some point, but it's been 6% since launch.
One other point at 18 when the account matures the money then becomes the childs...
greggers said:
Where does it say the money is locked away until the child's 18th?
http://www.halifax.co.uk/savings/accounts/branch-a...
"After 12 months your Kids' Regular Saver account will become a variable rate easy access account that we offer at the time. We'll write to you before the 12 months are up to remind you."
hmmm - why didn't I spot that yesterday?!http://www.halifax.co.uk/savings/accounts/branch-a...
"After 12 months your Kids' Regular Saver account will become a variable rate easy access account that we offer at the time. We'll write to you before the 12 months are up to remind you."
12TS said:
IIRC Halifax do 2 accounts - the Regular Saver and the Junior ISA.
What the OP is describing sounds like the ISA. To qualify for the 6% rate you'll need to have an ISA with the Halifax. The rate could get changed at some point, but it's been 6% since launch.
One other point at 18 when the account matures the money then becomes the childs...
I spotted that one as well - I must have merged the details from both in my mind. I do have a cash ISA with the Halifax so am entitled to the higher rate however my natural cynicism leads to me to believe the rate is eventually going to be comparable with my current ISA i.e. woeful (Something I am in the process of rectifying).What the OP is describing sounds like the ISA. To qualify for the 6% rate you'll need to have an ISA with the Halifax. The rate could get changed at some point, but it's been 6% since launch.
One other point at 18 when the account matures the money then becomes the childs...
Kudos said:
InstantSunshine said:
Thanks for that Mankers, I like the look of those investment funds. Time for me to do a little reading.
Historical performance is no guarantee for the future!
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