Best places for son's money?
Discussion
My son (18 months) is rapidly accruing cash via gifts and the monthly amount we are putting away for him. Obviously we want to secure the best possible growth (with low risk) for his money.
We're currently making a use of a mix of standard and high-interest kids regular saver accounts which is returning him an average of about 5%, which is healthy enough, but as the amount grows it would appear the options reduce.
There are some good-ish long term ISAs around, but none of the returns are spectacular. Have also been researching some funds with the likes of Jupiter etc.
Any tips?
We're currently making a use of a mix of standard and high-interest kids regular saver accounts which is returning him an average of about 5%, which is healthy enough, but as the amount grows it would appear the options reduce.
There are some good-ish long term ISAs around, but none of the returns are spectacular. Have also been researching some funds with the likes of Jupiter etc.
Any tips?
When I was a wee'un, my parents and grandparents put birthday money etc for me into Premium Bonds. The kinds of amounts we're talking about would earn pittence in even the highest interest accounts so the logic was that one win of the lowest prize would pay about 5 years worth of interest (equivalent).
I either never won sod all or I own part of a 1989 Vauxhall Cavalier that my dad bought new and I never even knew it!!
I either never won sod all or I own part of a 1989 Vauxhall Cavalier that my dad bought new and I never even knew it!!
You are liable for tax on any interest he earns over £100 p.a.
From HMRC's website:
"Giving money if you're a parent or step-parent
There's no limit on how much you can give or invest for your children or grandchildren. But the interest might be taxed as your income if:
you're the child's parent or step-parent
your child's unmarried, not a civil partner and under 18
Parents have separate limits
Each parent has a separate £100 limit. So if both parents contribute equally your child could get interest of £200 a year without either of you having to pay tax on it.
There's a separate £100 limit for each step-parent too."
From HMRC's website:
"Giving money if you're a parent or step-parent
There's no limit on how much you can give or invest for your children or grandchildren. But the interest might be taxed as your income if:
you're the child's parent or step-parent
your child's unmarried, not a civil partner and under 18
Parents have separate limits
Each parent has a separate £100 limit. So if both parents contribute equally your child could get interest of £200 a year without either of you having to pay tax on it.
There's a separate £100 limit for each step-parent too."
andy400 said:
My son (18 months) is rapidly accruing cash via gifts and the monthly amount we are putting away for him. Obviously we want to secure the best possible growth (with low risk) for his money.
We're currently making a use of a mix of standard and high-interest kids regular saver accounts which is returning him an average of about 5%, which is healthy enough, but as the amount grows it would appear the options reduce.
There are some good-ish long term ISAs around, but none of the returns are spectacular. Have also been researching some funds with the likes of Jupiter etc.
Any tips?
We have self select CTFs for ours.We're currently making a use of a mix of standard and high-interest kids regular saver accounts which is returning him an average of about 5%, which is healthy enough, but as the amount grows it would appear the options reduce.
There are some good-ish long term ISAs around, but none of the returns are spectacular. Have also been researching some funds with the likes of Jupiter etc.
Any tips?
NoelWatson said:
andy400 said:
My son (18 months) is rapidly accruing cash via gifts and the monthly amount we are putting away for him. Obviously we want to secure the best possible growth (with low risk) for his money.
We're currently making a use of a mix of standard and high-interest kids regular saver accounts which is returning him an average of about 5%, which is healthy enough, but as the amount grows it would appear the options reduce.
There are some good-ish long term ISAs around, but none of the returns are spectacular. Have also been researching some funds with the likes of Jupiter etc.
Any tips?
We have self select CTFs for ours.We're currently making a use of a mix of standard and high-interest kids regular saver accounts which is returning him an average of about 5%, which is healthy enough, but as the amount grows it would appear the options reduce.
There are some good-ish long term ISAs around, but none of the returns are spectacular. Have also been researching some funds with the likes of Jupiter etc.
Any tips?
http://www.thisismoney.co.uk/savings-and-banking/a...
Something that very few people think about is setting up a pension for your child...yes they can't access when they are 18 but having some kind of pension will take a burden off them when they are having kids themselves/buying their first home etc. The great thing about setting up a pension is that it attracts basic rate tax relief so the govt effectively grosses up your initial cash investment by 20% or so.....that on something compounding for sixty years is huge.
Personally I would split your investment between an ISA and a Pension.
Beardy10 said:
Little people want capital growth! Yes there is a chance of the lottery ticket coming in but if not your savings will in real terms be eaten into by inflation
But you don't need to invest all of it, £100 a year for the next 18 years has got to be worth the gamble. My nan bought me some when I was born, under £50 worth, I've had £500 worth of wins over the last 40 years, not a fortune but the small unexpected windfalls have been lovely.nobodyknows said:
My IFA advised me to set up Investment Trusts for my two about 3 years ago, been paying into them ever since. They have a small(ish) amount of cash in regular Building Society accounts too but they're not being added to any longer.
What sort of returns are you seeing on the trusts?Gassing Station | Finance | Top of Page | What's New | My Stuff