Childs saving - where best?

[stabilio]

I have 3 kids each with around £5k in their own Bank saving accounts which they don't have access to as not old enough yet.
The interest rate is a mere 1% up to £5k then 0.01% over £5k so I'm looking to shift that money elsewhere if they can earn more from it.
Where would you recommend I move some, or all of it?

[Simpo Two]

Junior ISA?

[JapanRed]

How old are they? If you’ve a 5+ year horizon I’d go stocks and shares junior ISA.

That’s what we’ve done with ours.

[Zarco]

Junior S&S ISA.

[LeadFarmer]

I put my £5,200 of my 14 yr old sons savings into a HL stocks ISA last year and today it is worth £6,400.

[stabilio]

Junior ISA sounds good but can you get the cash out whenever if ever needed or is it locked in for a period of time?

[Skyedriver]

Locked in until 18 as with the old CTF

[Zoon]

Would recommend Vanguard junior S&S ISA as the fees are pretty low.
Ours are 40% up on two years ago in their S&P 500 fund.

[jimPH]

I've got junior ISA's with IM for my lot

[Mr Whippy]

As with many things, going all in might not be best.

Why not JISA half, then put half in the best Building Society childrens account, then you’ve got some growing but locked away, and some accessible and making the most it can in a normal account.

[Simpo Two]

Mr Whippy said:

...then put half in the best Building Society childrens account, then you’ve got some growing but locked away, and some accessible and making the most it can in a normal account.

- but still going down in real terms. A Defensive fund perhaps?

In fact, does anyone here use such a fund instead of cash?

[Mr Whippy]

Simpo Two said:

Mr Whippy said:

...then put half in the best Building Society childrens account, then you’ve got some growing but locked away, and some accessible and making the most it can in a normal account.

- but still going down in real terms. A Defensive fund perhaps?

In fact, does anyone here use such a fund instead of cash?

Defensive finds don’t necessarily defend though.

Bonds/treasuries could crash and stocks/shares take a hit if interest rates rise over a period of time.

In that case cash could be superior, as the slowest loser.


In any case, if you don’t like inflation then you either have to like it, or take on unknown levels of risk.

I say unknown because no one knows a jot about coronavirus, how our respective governments will deal with it, and the longevity of this inflation spike.


Very few fundamentals. ALL based on policy... and even the policy makers appear clueless.

[Simpo Two]

Mr Whippy said:

Very few fundamentals. ALL based on policy... and even the policy makers appear clueless.

If economists knew how the economy worked... it would work...

[Burwood]

stabilio said:

Junior ISA sounds good but can you get the cash out whenever if ever needed or is it locked in for a period of time?

You can switch providers but no, you can not touch it until the kiddies are 18. The best place for the young is the stock market. Relatively more risk is best at their age. Find something with Apple/MSFT in it and forget about it.

Edited by Burwood on Monday 29th November 16:39

[BoRED S2upid]

Zarco said:

Junior S&S ISA.

This. My kids are sitting on 47% interest after 5 years in some rather safe funds.

[Enut]

BoRED S2upid said:

Zarco said:

Junior S&S ISA.

This. My kids are sitting on 47% interest after 5 years in some rather safe funds.

Interest?

[Burwood]

Enut said:

BoRED S2upid said:

Zarco said:

Junior S&S ISA.

This. My kids are sitting on 47% interest after 5 years in some rather safe funds.

Interest?

Nope. Stock funds.

[Enut]

Burwood said:

Enut said:

BoRED S2upid said:

Zarco said:

Junior S&S ISA.

This. My kids are sitting on 47% interest after 5 years in some rather safe funds.

Interest?

Nope. Stock funds.

I assumed that, I just didn't want anyone thinking they could get anything approaching 10% INTEREST per annum, certainly not for the last 5 years. In fact 10% TOTAL INTEREST over the last 5 years would probably be closer, from cash.

[Burwood]

Enut said:

Burwood said:

Enut said:

BoRED S2upid said:

Zarco said:

Junior S&S ISA.

This. My kids are sitting on 47% interest after 5 years in some rather safe funds.

Interest?

Nope. Stock funds.

I assumed that, I just didn't want anyone thinking they could get anything approaching 10% INTEREST per annum, certainly not for the last 5 years. In fact 10% TOTAL INTEREST over the last 5 years would probably be closer, from cash.

You’d have about 1% compounded if cash. If you hold cash as an asset class as opposed to needing it, sorry to use such language but your a flaming idiot

[Enut]

Burwood said:

Enut said:

Burwood said:

Enut said:

BoRED S2upid said:

Zarco said:

Junior S&S ISA.

This. My kids are sitting on 47% interest after 5 years in some rather safe funds.

Interest?

Nope. Stock funds.

I assumed that, I just didn't want anyone thinking they could get anything approaching 10% INTEREST per annum, certainly not for the last 5 years. In fact 10% TOTAL INTEREST over the last 5 years would probably be closer, from cash.

You’d have about 1% compounded if cash. If you hold cash as an asset class as opposed to needing it, sorry to use such language but your a flaming idiot

Agreed.