Top 6 Children’s savings.
Children’s savings have always been a tough area to make the best moves in. If you are lucky enough to have an independent financial adviser, they can offer invaluable help. But the Financial Services Authority has made it unrealistic for many to have the benefit of an IFA (unless you earn an FSA fat cat salary of course!) We hope this will help.
When you start to save for children, remember that the interest on any savings parents make for their children will be taxed if they exceed £100 a year.
So we thought we would put together the top 6 sites for children’s savings and just do a brief note on some of the options available.
1) Children’s savings accounts
Children’s accounts are available from most banks and building societies. Most will never keep up with inflation, though they often have enticing opening offers. Read the small print and review things regularly.
2) Pensions for children
A bit of an odd choice, but the chances of many of today’s children retiring at 65 on a decent pension are pretty low, so children’s pensions are far from a daft idea.
3) Stock market-related investments.
These are available on a monthly savings basis, or for lump sums. Ones with very low minimums for top-ups can be really useful for popping in the odd few pounds from Christmas or birthday presents.
4) Child Trust Funds or Junior ISAs
5) Friendly Society Savings Plans.
Bit of a mixed bag here – you really need advice on which one offers reasonable charges and flexibility as well as the prospect of a decent return.
6) National Savings Kids Savings.
National Savings offer dull but secure returns, though premium Bonds offer a bit more excitement. There are no specific children’s plans these days.
7) The Family Bank
If your family want the best possible results and are prepared to plan well ahead, this is the secret that wealthy families have used to preserve and increase their wealth since the time of the Crusaders. Yes, there is a significant initial cost, but probate becomes swifter and the potential second generation and often foirts generation benefits are very substantial.
Now here are are the Children’s savings Top 6 sites:
- The Money Savings Expert – now a fully commercial site but really useful nevertheless. Useful information on current best buys in children’s deposit accounts and others.
- MoneyFacts – a good site for comparing accounts and finding the best rates for children’s savings accounts.
- This is Money – this is an article about children’s ISAs but there are other useful articles too.
- Jump Savings – an interesting option if more adventurous than most. Children’s Investment Trust accounts.
- The Money Advice Service – the Financial Services Authorities attempt to repair a little of the loss to the public of Independent Financial Advice, run and managed by bureaucrats at far too much expense, but useful despite all that!