Savings Accounts/Trust Funds

[China Doll]

Hi All,

I was planning to open a little savings account for my nephew which he can have when he is 18 years old. I checked with my sister to make sure this is something she hasn't already done but she told me that when she looked in to it that it was in the fine print that the money you put in is not the same as what he might get in the end. She is now putting £2 coins in a pot for him.

I am not very good with all things financial but I would still quite like to go ahead with this idea. I would use HSBC bank. Can someone possibly explain (in very simple terms) why my nephew might not get everything I put in to an account for him in the long run? Also, is this a good idea, and if so, what sort of account should I be asking the bank to set up? I don't really want to go in to the bank without any clue about what I'm asking them to do as for some reason, talking to bank staff makes me very nervous.

Thank you. :c)

[ubasses]

Your sister may have looked at the child trust fund investing in stocks and shares which can go down, but after the age of 13 the fund has to be rebalanced to mitigate any falls in the last few years. It depends on when your nephew was born because there is now the junior isa which you can keep in cash. HSBC do thede why not go in and speak to a financial adviser who will explain it all to you.

[factor-fiction]

You will certainly get more out than you put in as interest rates in a Junior cash ISA will not be negative, but of course if interest rates are lower than the RPI/CPI the value of the money will fall a little in real terms

[China Doll]

My nehew was born in August. I'm only wanting to put £5 a month in so it wouldn't be vast sums. I just wanted to get an idea of what it is I want to do before going in and sounding like a complete numpty at the bank. Thanks for the answers so far :c)

[annie0000]

The Halifax childrens regular saver gets a good rate (6% gross) but need to invest in min of £10 per month.

http://www.halifax.co...nts/#kidsregularsaver

[China Doll]

Thanks anne... I really only want to do £5 cause if she goes on to have more kids I want to make sure I can afford to do the same for all of them lol!

[annie0000]

lol China, then maybe get them to set up the account and you add your £5 to it. :o)