Discussion
Afternoon all,
Sorry I did go back 7 pages and couldn't find a thread on this subject but do remember there being one. After some parental advice. Baby 1 is on her way in 8 weeks and the wife and both families are talking about setting up accounts for her that she can have access to when she's older and responsible and I'm sure people have gone through this themselves so looking for some reccomentions of things to do.
I'm guessing the accounts have to go in the child's name, which having 3 couples putting into accounts I was wondering if there's any advantage to having 3 different account types.
All will be putting into it regularly with my wife and her parents doing monthly instalments and my parents doing yearly at her birthday.
What are the best options at the moment? Is the lifetime isa then best way to go?
Sorry I did go back 7 pages and couldn't find a thread on this subject but do remember there being one. After some parental advice. Baby 1 is on her way in 8 weeks and the wife and both families are talking about setting up accounts for her that she can have access to when she's older and responsible and I'm sure people have gone through this themselves so looking for some reccomentions of things to do.
I'm guessing the accounts have to go in the child's name, which having 3 couples putting into accounts I was wondering if there's any advantage to having 3 different account types.
All will be putting into it regularly with my wife and her parents doing monthly instalments and my parents doing yearly at her birthday.
What are the best options at the moment? Is the lifetime isa then best way to go?
Hi Richard
Firstly, congratulations!!!
A Lifetime ISA is no good though as you need to be 18 to open one!
A Junior ISA may be something to consider. A parent (or guardian, which obviously doesn't apply in your case) can open one but other people are free to contribute to it.
You (and others) can put in up to £4,368 in the current tax year.
Your daughter will be able to take control as to how it is invested when she turns 16 and can't access the money until she is 18 (in both cases this is presuming you have let her know about it...
).
I do this for my daughter.
Firstly, congratulations!!!
A Lifetime ISA is no good though as you need to be 18 to open one!
A Junior ISA may be something to consider. A parent (or guardian, which obviously doesn't apply in your case) can open one but other people are free to contribute to it.
You (and others) can put in up to £4,368 in the current tax year.
Your daughter will be able to take control as to how it is invested when she turns 16 and can't access the money until she is 18 (in both cases this is presuming you have let her know about it...
).I do this for my daughter.
There's some decent "regular" saver accounts for kids that pay a good rate of interest in the first year ~4.5%. Might be a good place to start?
Move the money into something else once the promotional period is up.
https://www.moneysavingexpert.com/savings/child-sa...
Move the money into something else once the promotional period is up.
https://www.moneysavingexpert.com/savings/child-sa...
We've got three for our son, a Nationwide Future Saver (3% if you have your main bank account with Nationwide), a HL Junior ISA (stocks and shares) and a HL Junior SIPP.
Pros and cons to each one, the JISA and the SIPP have both (so far) significantly outperformed the cash savings account, but we like having the savings account option as we can control it when he gets to 18, he can start adding his own money when the time comes and he has a bank book etc etc (last week he paid in about £6 in coppers that we'd saved up together in his money box).
We know he'll get access to the JISA when he's 18, but as the poster above mentions, there are ways around that just in case.
Obviously he won't have access to the SIPP until he's much older so its the smallest of the three, but it'll be a good way to teach him about pensions when the time comes, we know it'll hopefully give him further security in later life once we've gone and he still benefits from a 25% tax top up for any deposits up to somewhere around £3k p/a.
Pros and cons to each one, the JISA and the SIPP have both (so far) significantly outperformed the cash savings account, but we like having the savings account option as we can control it when he gets to 18, he can start adding his own money when the time comes and he has a bank book etc etc (last week he paid in about £6 in coppers that we'd saved up together in his money box).
We know he'll get access to the JISA when he's 18, but as the poster above mentions, there are ways around that just in case.
Obviously he won't have access to the SIPP until he's much older so its the smallest of the three, but it'll be a good way to teach him about pensions when the time comes, we know it'll hopefully give him further security in later life once we've gone and he still benefits from a 25% tax top up for any deposits up to somewhere around £3k p/a.
Highway Star said:
We've got three for our son, a Nationwide Future Saver (3% if you have your main bank account with Nationwide), a HL Junior ISA (stocks and shares) and a HL Junior SIPP.
Pros and cons to each one, the JISA and the SIPP have both (so far) significantly outperformed the cash savings account, but we like having the savings account option as we can control it when he gets to 18, he can start adding his own money when the time comes and he has a bank book etc etc (last week he paid in about £6 in coppers that we'd saved up together in his money box).
We know he'll get access to the JISA when he's 18, but as the poster above mentions, there are ways around that just in case.
Obviously he won't have access to the SIPP until he's much older so its the smallest of the three, but it'll be a good way to teach him about pensions when the time comes, we know it'll hopefully give him further security in later life once we've gone and he still benefits from a 25% tax top up for any deposits up to somewhere around £3k p/a.
Have done the same for our three month old. The Nationwide Future Saver (existing FlexPlus customer) is good value.Pros and cons to each one, the JISA and the SIPP have both (so far) significantly outperformed the cash savings account, but we like having the savings account option as we can control it when he gets to 18, he can start adding his own money when the time comes and he has a bank book etc etc (last week he paid in about £6 in coppers that we'd saved up together in his money box).
We know he'll get access to the JISA when he's 18, but as the poster above mentions, there are ways around that just in case.
Obviously he won't have access to the SIPP until he's much older so its the smallest of the three, but it'll be a good way to teach him about pensions when the time comes, we know it'll hopefully give him further security in later life once we've gone and he still benefits from a 25% tax top up for any deposits up to somewhere around £3k p/a.
Thanks everyone much appreciated with the help.
I'm guessing with a Jisa is you my child can only have one? I think my parents would want to manage the savings themselves so am i better suggesting a different type of account of them? I do wonder whether i should set up a S&S isa & a Jisa and my parents have the Jisa and i have the S&S?
I'm guessing with a Jisa is you my child can only have one? I think my parents would want to manage the savings themselves so am i better suggesting a different type of account of them? I do wonder whether i should set up a S&S isa & a Jisa and my parents have the Jisa and i have the S&S?
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