Childrens Investments help?

[2 5HAN]

The arrival of a bouncing and crying baby boy has led me to start contemplating some investments for him.

I am buying the obligatory premium bonds especially I see there is the chance of this Christmas super draw.

I was just wondering if anyone has any thoughts on any specific Building Society that may be good for the long term. I know some are still mutual’s and may get bought out in the long term? Possible payout?

I will be opening a child’s trust fund in due course also but was looking to invest circa £100 - £200 per month for him into something else?

Thanks in advance
Shan

[chrisgr31]

With our daughter we got £250 from Gordon Brown to invest in one of a number of approved products. Once opened those products can have amounts added by parents, Grandparents etc. They are called Childs Trust Funds and ours is with www.thechildrensmutual.co.uk/

Masses of providers around including the big supermarket chains.

[M@H]

Ditto, Child Trust Fund, just invest it wisely and top it up.

OH, and congratulations

Edited by M@H on Thursday 19th October 11:38

[Smartie]

M@H said:

Ditto, Child Trust Fund, just invest it wisely and top it up.

OH, and congratulations

Edited by M@H on Thursday 19th October 11:38

But be careful, as you have no control. If daughter gets to 18 and decides to blow it all on a weekend in Ibiza with all her mates, you can't stop her!

[M@H]

Very true..

..ultimately though to get a tax free investment it would have to be in the name of the child..(?)

[2 5HAN]

Good point...

That would be one hell of a party in Ibiza to be fair...

I have managed to find a good deal at the Halifax 10% for the 1st year?
Think i may have a look through some others too..

Cheers for the help

[che6mw]

Child Trust Fund first and foremost - although when they reach 18 any money in the fund is theirs to control - you have no say whatsoever. Not sure how you'd feel about that.

Beyond that I stick £100 a month (the max) in to a Halifax regular saver at 10% interest (and since it is a trust for my boy that's tax free too). That rate lasts for a year but after my first year I was offered it again so i've been doing that for about 18 months now. Also it is perfectly legal for each parent and grandparent to open one of these - so technically you could have 6 running cocurrently.

Think someone is offering a 12% interest account with max payments of £250 pcm at moment ING or Alliance and Leicester maybe - might be worth looking at.

[martin hunt]

I started up a Virgin Stakeholder Pension just after my son was born, 5 years ago.

It has grown at over 16% year on year and Mr Brown puts in 22 pence for every pound I put in (roughly)......Based on what I put in so far and continuing the same amount until he is 18 and it's current growth rate, my son will have a pot of almost £1.9 milion when he retires @ 50 !!!!!! better than my pension.....

[Eric Mc]

Mr Brown puts in 28p - not 22p.

And if you are a higher rate tax payer, you should be claiming additional tax relief.

[Smartie]

martin hunt said:

my son will have a pot of almost £1.9 milion when he retires @ 50 !!!!!!

he'll need that for a one up, one down, in the middle of Scotland by then!

[Nicholas Blair]

Try Baillie Gifford, www.bailliegifford.com/

They have a childrens plan, downloadable version here....

www.bailliegifford.com/documents/43190_Childrens%20Savings%20Plan%20brochure%201205.pdf