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Baby ISA/Savings accounts

Just looking into savings accounts for our little man, anyone got any good hints or tips of which ones to go for or to avoid?

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  • RRrr2011RRrr2011 Posts: 1,262

    I was asking my dad about this last week as wanted to be organised. I would say go to your bank and have a chat - my dad mentioned there is a special sort of account (an investment something - not very helpful I know!) that you can open for a baby - it was set up when the government removed the child trust fund payments. You have to put the money away until they are 18 but the way I see it - its for the childs future and so should be put away until then anyway. 

    My dad is getting me some info from his friend who works in a bank so will let you know when they come back to us. 

    I had a quick look on money saving expert too last week and the best ISA for child is with Halifax but only if you open an ISA there for youself too - the child ISA then gets 6% 

  • picklepickpicklepick Posts: 1,141

    I was going to suggest asking this question on the Money Saving Expert forum. There's some incredibly knowledgable people on there!

     

     

  • RRrr2011RRrr2011 Posts: 1,262

    I usually live on money saving expert but have to say not really found it very helpful in this case. You might find something that I didn't though.

  • Our accounts are with RBS (we're in Scotland) and we have opened our daughter a normal savings account and a Child trust fund which we pay into regularly and can't touch until she's 18 x
  • cebpickle1cebpickle1 Posts: 6,786
    My mil has just opened a Northern Rock child account for Caitlin was best interest for a non Isa account. We looked at several. I started looking at child isa but it was wgen i had little sleep. Need to look again really
  • picklepickpicklepick Posts: 1,141

    You can no longer get child trust funds for children born after 2nd Jan 2011. So that's a non-starter.

    A junior isa is pretty similar in that it remains untouched until the child is 18.

  • RRrr2011RRrr2011 Posts: 1,262

    OK - the "investment something" is an investment child trust fund which you can open (you don't get the money from government like mentioned about though as stopped 2011)

  • Pickle pick you are correct in saying you no longer get government child trust finds but instead the government set up junior isa's which is what we have for Isla and what I mean when I say we have a child trust fund for her. It is essentially the same thing. It's a junior stocks and shares isa. All I meant was we have one of these as well as a standard rainbow savings account which we can pay into at any time and withdraw from x
  • Snowy xSnowy x Posts: 1,100

    Junior Isa's are definately worth getting, even if you only pay in a few pounds and then never touch it, because once you have opened up a savings account in your childs name they are no longer eligible for the junior Isa, I know because I cant get one for my children even though I'd love them to have one, So i would suggest opening the Isa first, then if you want a seperate savings account you can open that afterwards, but not vice versa!

  • That wasn't the case for us snowflake, who told you that you couldn't get one? You are only allowed one investment fund as far as I can tell, of you already have a government one then you are not allowed a private one (could be totally wrong but think that's how it works) but having a standard savings account shouldn't restrict you getting a junior isa x
  • cebpickle1cebpickle1 Posts: 6,786
    I read it is only parents that can open junior isas and they can only have if no child trust fund but didnt see anything about normal savings
  • MrsQM2MrsQM2 Posts: 3,723
    I've opened an account with the Yorkshire building society, it's not a children's account, but a good rate of 2.25% and it is in Williams name, with other names as trustees, and we can only get it at it 3 times a year, but obviously, we dint want to get to it until he's old enough for whatever he needs - uni hopefully!!



    I originally set up a children's for him, but interest rate was only 1.97%.
  • shellycrook2bshellycrook2b Posts: 1,299
    We opened a child's isa at nationwide with 3% interest but with max annual input of 3.5 k! Like we'd ever be able to put that in without winning the lottery!! Hubs opened it but it's in Chloe's name, he's just in charge of it if you will. We can't draw out until she's 18 and she can't draw out without us.



    Apparently Barclays have one with a better rate so am going to look into that as if it's the case then I'll open one there. At the mo hubs puts just ??20 per month in but when I return to work we will probably put ??80/??100 in per month.



    xxx
  • Snowy xSnowy x Posts: 1,100

    It was actually the bank that told us that because we had opened up a savings account for them, they were no longer eligable for the Isa, which was obviously gutting because the Isa holds a much higher interest rate than the standard childs saver account!

  • cebpickle1cebpickle1 Posts: 6,786
    Try a different bank. That is rubbish and we can have both savings and isa
  • ditzidancerditzidancer Posts: 1,145
    Thanks ladies, I need to have a think and a look round. The bounty packs had the junior isa info but I no nothing about stocks and shares. I suppose there won't be much difference between them all in the end. Xxx
  • mrsleggomrsleggo Posts: 807

    We tried to set one up with the Halifax, they were offering 6% but only for a year after that it drops to a really low %. They said to get 6% continually you need to close the account and reopen a new one and transfer the money across. Like I can be bothered with all that!!! So we just ended up with an ISA but she also has her trust fund as she arrived before they cancelled them.

    Dawn x

  • lccarrinlccarrin Posts: 201

    my hubby works for a bank so he gets staff deals, but e looked around first and from what i gather the investment type accounts are basically like a normal savings account only rhe government uses the money you put in to invest in stocks and shares. normally the advantage of an isa is they're tax free but as children don't earn enough to pay tax on their interest there's not that advantage. I'd say it depends on what you ant te moneyfor and if you want to acess it before he's 18/16 or if you want him to be able to access it first. (don't quote me on any of that-i was only half listening when he explained it!)

  • ditzidancerditzidancer Posts: 1,145
    Thanks elsie yeah that was my understanding too. I think ideally we'd want to be in control so going to look around at savings accounts. Do you know if you can get child benefit paid into a savings account or is that not allowed?
  • cebpickle1cebpickle1 Posts: 6,786

    You can only get Child Benefit paid into an account in your name not the childs.  So we opened a savings account in mine and hubbies name and get the child benefit paid there, we get bonus 1% interest if only make 1 withdrawal a year.  It is one with a cash card and online access from Norwich and Peterborough building society.  Rest of the interest is pants but it is everywhere to be honest

     

  • ditzidancerditzidancer Posts: 1,145
    Thanks claire. Need to go and register him as an offical person too. Yeh prob best stashing it under the matress aren't I! Xxx
  • cebpickle1cebpickle1 Posts: 6,786

    It is backdated to birth main reason we put it in a seperate account is then for big purchases there is a lump there and we havent got used to getting it yet

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