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Thread: Child savings account. Confused!!!

  1. #1

    Child savings account. Confused!!!

    Hope some can help please.
    I am looking to open a regular savings account for my 7 month old baby. I thought I had cracked it by simply getting a high rate Halifax saver. I realised, like an adult account that it only fixes for a year! If that's the case I could potentially have the hassle of opening a new one every for 18 years to keep the money making half decent interest.??

    Then it dawned on me if i am correct, that if after a year I want to move my money, I can't move to another high interest regular saver because I will then have a lump sum that you generally can't deposit into that type of account. I suppose the easy answer is to put it in a isa but surely there is something I am missing!?!

    There is nothing on the internet explaining anything about it. Help would be greatly appreciated

  2. #2
    Yes the high rate savers are a pain as the banks don't want you building too high a balance as it costs them money to provide the artificially high interest rate.

    Have you considered a stocks and shares Junior ISA investment which should hopefully grow above inflation without needing so much messing around?

  3. #3
    Makes sense I am just very uneducated in that field so wouldn't really know where to invest.

  4. #4
    Use the RS to build annual pot,

    Then put this pot into a high interest account (santander, HSBC & halifax kids a/c-currently, but will be different next year when your RS matures)

    Use these accounts to drip feed into multiple RS until they mature and repeat (including adding investment in S&S ISA (more risk attached)

    You have to manage the accounts though and move when a better rate appears.

  5. #5
    Sorry HSBC kids account has minimum age above your childs current age, apologies for duff info.

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