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?
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%
I was going to suggest asking this question on the Money Saving Expert forum. There's some incredibly knowledgable people on there!
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.
This might help:
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.
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)
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!
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!
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.
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!)
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
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