Childs Savings Account

[Beeble]

Hey

I hope to open up an account soon for my growing little bean and save around £50 a month for the next goodness knows how long.

I am not looking for an account which the child will automatically gain access to when they turn 18 or 21 because as a controlling person I do not want it spent on a 2 week bender in Ibiza (which my step brother did with his not that long ago!)

I am wanting it so that my child can have what they need growing up - driving lessons, first car, wedding or house deposit - possibly uni fees if we no longer get it free by then. As we are not loaded I think having this money pre-saved will be helpful for us.

My question is, what is the best type account for this kind of saving? It is for the child but I would like it in my name and not so they can gain access at a certain age? Does this make sense? Probably too soon to be thinking about it but I am rubbish with banking! haha xx

 

[Karate Kid]

It makes complete sense Hun, for us even though LO isn't here we have already started putting money aside for him/her. Currently we are just using our e-savers but we are looking at long term bond options. We have not chosen which one is best yet so I am probably no use to you what so ever but hubby and I are in agreement that the funds should not be released to LO simply when they turn 18. Neither of our parents told us they had money for our wedding saved but it was such a lovely surprise and it was very touching.

Sorry for rambling but long story short I think saving for LO is a lovely idea and it means if they need money when they are grown up you may be able to help them xx

 

[Jayjay027]

I think if you just open up a savings account in ur name and when ur LO is old enough, add his/her name to it so it becomes a joint account.

There may be better options though so it might be worth while having a chat with ur bank x

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[AugustMum]

I've opened an account for my LO that is linked to my accounts so I have control over it. She won't actually get the cold hard cash but me and OH have decided it will be used for her driving lessons and car etc.

I'd say either just set up a savings account in your name or one in their name that you have control of.

 

[jules84]

There are accounts that you can have in your name that you cant withdraw from for a period of time. the benefit is the interest is higher.

That's what we will do and when lo is mature enough or needs it ill just transfer to their own account. I will set up a standing order so a set amount goes monthly (while we can afford it) and all birth xmas and birthday money will go there also. xxx

 

[Lynds77]

have you lookeed at a junior ISA? i have got the paperwork through, but I aint looked at it yet. you want something that will give you the most interest year on year, and something that locks the money in so you can be tempted to take it out in an emergency!!

 

[katey123]

If you want to remain in control of the money you must not put it in childs name it must be in your name or joint names. You could open an ISA and 'Name' title the account as lo's account but it will be your account as you need to be over 18 years old to open it . Most ISA's are about 3 % interest whereas savings accounts are only about 1% interest rates at the moment .
Halifax is the best for junior ISA as there currently at 6% but do have to meet some 'special rules' to get it, the main disadvange is that it has to be in the child's name and you will not be able to control it at all and once they turn 16 or 18 they can empty it completely so I don't agree with these accounts at all. Good luck xx