Savings accounts for newborn

[Conanius]

Obviously a shameless plug that we have just had our first.

I'm keen to put away regular money for release at 18/21, and I'm wondering what products are out there - and even what they are called!

I presume there is some kind of Child ISA or some other tax free option, but obviously keen to get a good level of interest.

Happy to lock into a regular fixed saving account if it gets a better level of interest.

 

[Lareon]

how much per year are you planning to put away?

 

[peterwalkley]

If its a normal account, you just ask for the interest to be paid gross. There's a form the bank/building society can provide.

 

[Wyrdo]

The government stopped the child trust fund but do a junior ISA now.

Not sure if that's of any use to you.

https://www.gov.uk/junior-individual-savings-accounts/overview

Oh and congratulations by the way

 

[snitcher]

child isas would do the trick. you can choose a cash isa or an shares isa (for kids as well ,yes ).

 

[Conanius]

Thanks for the replies guys.

I'm thinking something like £50-£100 PCM, so far from a fortune, but enough that might put a dent into something financial in the future.

Any specific product recommendations ? Child current account recommendations also appreciated

 

[SamuraiTortoise]

We went with the Nationwide Junior ISA...at the time it seemed to be the best out of a very similar lot and we already have accounts with them.

http://www.nationwide.co.uk/savings/childrens/smartjuniorisa/introduction.htm

 

[Freefaller]

I don't have any recommendations, but congratulations Gareth mate

 

[PhilGQ]

Friendly Society policies.

£25pm regular savings plan, in a tax free environment. You can do this on top of or instead of a Junior ISA (JISA).

Most Friendly Societies that do regular savings plans do JISAs too.
A couple I am aware of are the Sheffield Friendly and the Children Mutual, there are others though, just Google "friendly society plans".

If its for 18/21 then I would look for some stock market exposure otherwise inflation will take its toll.

There are also NS&I policies, but they will mostly be cash based.

 

[Clipsey]

Congrats on the newborn

 

[Goliath]

Congrats

I opened a Halifax Kids Regular Saver for our little bundle of joy, its currently paying 6% for the first year which beats anything else hands down (or did when I looked):

http://www.halifax.co.uk/savings/accounts/branch-accounts/#kidsregularsaver

Only hassle is that offically in 9 months I'll need to change/shop around again, but the very nice lady at the halifax told me quietly that she could just transfer the balance to a current account, then open a new Kids Regular Saver account and transfer it in for another year at 6%

 

[Edrof]

Congrats! Welcome to the world of no sleep and plastic tat! You do get unlimited hugs, though, so it's not all bad.

 

[big_white_dog84]

I just opened a nationwide junior Isa for my 3 month old. Best rate including bonus, and after bonus period still up there. Downside is the money is gone until he is 18, and at that point only he can access it. So no way back if you fall on hard times (although you would have to be pretty low to take money out your child's account anyway I guess)

 

[Conanius]

I just opened a nationwide junior Isa for my 3 month old. Best rate including bonus, and after bonus period still up there. Downside is the money is gone until he is 18, and at that point only he can access it. So no way back if you fall on hard times (although you would have to be pretty low to take money out your child's account anyway I guess)

I'm not totally sure I'm worried about that, and I'd have thought most accounts were like that anyway?

 

[Ian_Eb]

I would double check any conditions on the age thing first.

When we did ours we were told that the child get full access to the account at 12 years of age. In the end we decided that we would rather keep control of it until a time of our choosing even though it meant potentially paying tax on the interest.