Kids - fixed return accounts?

[mrdanbartlett]

Hi all,

Sorry I tried to do some research but still not 100% clear on what is best for my scenario:

- Kids ages 8 and 6, both have some money (over 10k between them)
- I'd like to invest it but my wife is strongly against index funds (Its what I'd personally do but its not worth me trying to fight that)
- So trying to look at fixed rate return options, I'm happy to tie the money up for 1-5 years if I can get a OK fixed return (4%+)
- I'd also like to top the money up, but seems many are limited to £100 per month max

Any experience here on this, thoughts for what are the best options? I'm concious rates will probably drop given time so would like to try and lock in a good rate, hence the fixed notion - as I see rates across all my other non-fixed acounts are falling now.

Really appreciate any advice.

[AdamIM]

mrdanbartlett said:

Hi all,

Sorry I tried to do some research but still not 100% clear on what is best for my scenario:

- Kids ages 8 and 6, both have some money (over 10k between them)
- I'd like to invest it but my wife is strongly against index funds (Its what I'd personally do but its not worth me trying to fight that)
- So trying to look at fixed rate return options, I'm happy to tie the money up for 1-5 years if I can get a OK fixed return (4%+)
- I'd also like to top the money up, but seems many are limited to £100 per month max

Any experience here on this, thoughts for what are the best options? I'm concious rates will probably drop given time so would like to try and lock in a good rate, hence the fixed notion - as I see rates across all my other non-fixed acounts are falling now.

Really appreciate any advice.

JISA account
Rates will fall and that is why you wouldn't be able to lock in 4% for 5 years.
Shame about 'no stocks' as history has proven over time stocks (index) go up. Fact
Inflation will most likely render cash interest flat

[mrdanbartlett]

AdamIM said:

JISA account
Rates will fall and that is why you wouldn't be able to lock in 4% for 5 years.
Shame about 'no stocks' as history has proven over time stocks (index) go up. Fact
Inflation will most likely render cash interest flat

Thanks and I totally agree re stocks, its just not an argument I have the energy for, I'll do that with my own money though. Any sort of fixed bonds or such? Can you top those up?

[okgo]

Does she know her pension is invested in stocks?

[C69]

Seems like the perfect opportunity to remind your wife that marriage is all about compromise (you might want to be more diplomatic), then put half of your kids' funds in a passive equity fund and half in fixed-rate savings.

Maybe report back in ten years, to see how they've performed?

[AyBee]

okgo said:

Does she know her pension is invested in stocks?

If she has one, it might just be worth digging out its performance and showing her how it's done over the last 5-10 years!

[mrdanbartlett]

She has a pension, and I do too - and I'm fairly on it with that so have always shown her its performance etc.

Anyway, I found this
https://www.nsandi.com/products/guaranteed-growth-...

How do I get something like this but in my young kids names?

[weeve]

If you want NSI then this is what they do for kids these days.
https://www.nsandi.com/saving-for-children.
They used to have other children’s saving bonds but they are long gone. Now it’s just premium bonds or cash JISA. I do investment JISAs for my kids and buy any old crap when have a few quid long as it’s a global fund and very low charges. Has been okay. It’ll be theirs when they’re 18 and I fully expect them to use it sensibly to invest in their future. Yeah right.