ChatterBank3 mins ago
Childrens Savings Account
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We would like to start a savings account for our new grandson, ideas please
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MSE site is good
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inafix whichever you choose, if it's an account where tax is paid on the interest, make sure they know your grandson is a non taxpayer. I opened accounts for my grandchildren and didn't realise until I saw the statement after a year that they had taken tax and 3 months later I'm still trying to get it back from HMRC, it's been an absolute nightmare. Congratulations on the birth of your Grandson.xx
I expect you are thinking of investing for the longer term .. at least his 18th birthday ?
If so you can afford to take greater risk therefore you could invest in stocks and shares, and to maximise the growth you would need to invest in a Stocks and shares junior ISA where any capital growth or income would be tax free. The stock market beats most forms of investments over the longer term. You can invest with a lump sum of approximately £250.00
Or better still if you can afford to put a minimum of £25.00 a month away, you will get the benefit of something known as pound cost averaging. Whereby as prices fluctuate you buy more shares when prices drop.
Over the long term this will give a welcome boost to any savings plan.
Whatever you do... don't invest it in an ISA with your bank where, although you get a "Tax Free Wrapper''... you get a measly amount of growth that doesn't even beat inflation.
If you want the money to grow it has got to be invested in shares, not safely put away in the bank.... by the way the bank just Invest it in shares and keep most of the profit and give you a little of the return.
Have a look at the Hargreaves Lansdowne site ... read '' investing for children'' and make your own decisions.
If so you can afford to take greater risk therefore you could invest in stocks and shares, and to maximise the growth you would need to invest in a Stocks and shares junior ISA where any capital growth or income would be tax free. The stock market beats most forms of investments over the longer term. You can invest with a lump sum of approximately £250.00
Or better still if you can afford to put a minimum of £25.00 a month away, you will get the benefit of something known as pound cost averaging. Whereby as prices fluctuate you buy more shares when prices drop.
Over the long term this will give a welcome boost to any savings plan.
Whatever you do... don't invest it in an ISA with your bank where, although you get a "Tax Free Wrapper''... you get a measly amount of growth that doesn't even beat inflation.
If you want the money to grow it has got to be invested in shares, not safely put away in the bank.... by the way the bank just Invest it in shares and keep most of the profit and give you a little of the return.
Have a look at the Hargreaves Lansdowne site ... read '' investing for children'' and make your own decisions.
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