Hi all,
after a bit of perspective from people with children older than mine (5 weeks!). We're looking at putting away monthly savings for our daughter and are torn between how we do this. Until now, both mine and my wife's savings have always been held in current accounts, regular savers or one year fixes due to the requirement of needing a house deposit for the next step on the ladder within the next 5 years but with our new arrival I've started looking at the confusing world of the S&S ISA. I'm interested to know what other people have done for long term child savings before I go charging headlong into putting money where I shouldn't!
We have in the interim opened a Junior Cash ISA at 3.6% in her name but we're yet to fund this - we are aware and happy that this is all hers and available once she reaches 18. The idea for this account is that this is the inheritance account for when money is deliberately asked to be put aside for her for when she is 18 (my grandad for example was quite explicit in the matter) for her to then spend as she sees fit. While I hope that myself and my wife will be good parents, there is always the feeling that actually, it'd probably be better in our name using our own S&S ISA allowance so we then have say over it ourselves and the ability to use more allowance per year - we're also actively looking at setting aside some savings each month as investments as we're nearly at the £1000 ceiling on interest earnings each.
Any advice?
I've got stocks & shares ISAs in the name of each of my children. The return has been a lot higher than if I'd put their money in a cash ISA.
I've also been putting the equivalent of the child allowance (£84 pcm) into SIPPs for them since birth. The government also kindly adds something (20% iirc). My daughter is 17 years old and she's built up about £48k in her SIPP. I know they won't be able to access this until they're aged 55 (under current legislation) but it's a good start for them
I setup a premium bonds account for my son and stick in £50 a month. Obviously no interest but I’ve always done ok with them.
We move 100,00 every month for our grand child into a child ISA via Hargreaves Lansdown, works fine - can PM details if interested
Cheers, Peter
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