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Savings for my son

dougys123 Avatar
5y, 10m agoPosted 5 years, 10 months ago
Can anyone help me, I have a 4 figure sum of money to invest for my son but interest rates seem rubbish at the mo. Can anyone advise if there are any accounts out there that can offer good return on the cash. I know little about this so all help would be good.

Serious answers please
dougys123 Avatar
5y, 10m agoPosted 5 years, 10 months ago
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[mod] 1 Like #1
Interest rates are rubbish everywhere at the minute....have you considered Premium Bonds? I win quite often.
#2
You can get about 3% but it takes a bit of effort as they're not online accounts. You could also put it into regualr saver accounts too as they pay more.
#3
2.5% if you lock it away for 5 years... http://www.nsandi.com/products/cbb/calculator
#4
hes only 2, I had a regular saver with halifax paying 6% for a year which goes into a save4it account with then pays 1.05% there after. Halifax said that the regular saver would then be set up again for year 2 getting 6% on the money. I popped in today to get the book updated and they didnt set up a new account for the regular saver for the second year, the rate dropped to 1.05% in the regular saver and was transferred to the save4it account at 1.05%. Can I just open another account again? take what i have and invest into something like premium bonds?
(hope all that makes sense)
#5
I've got a bit I need to find a new account for. Not much around at the moment though...
#6
Have you thought about shares as an investment?

It depends on the level of risk vs reward that you are willing to take, and when your son needs the money.

I have investments in shares, and am invested in Gulf Keystone Petroleum (GKP) and Xcite (XEL). Both have done well recently, and I feel have a great deal further yet to go. I am neither a financial advisor, nor advising you in any way to purchase shares. However I believe in todays financial economic climate, the stock market to be a good place to put your money.

If I was investing for my son / daughter I would consider these two, but probably put it into a company called Dominion (DPL)

http://www.iii.co.uk/investment/detail?code=cotn:DPL.L&it=le

From the link above ou can find a wealth of information, i reccommend clicking on the filter button, and filter on 5+ to get rid of most of the chitter chatter.

Posts by Gramacho, Scaramouche, and Hub to name a few are a good read, and provide a wealth of useful information

Once again I am not reccomending these shares in any way, and not providing financial advice, but reminding you of an alternative investment choice.

I hope you find the right investment for you and your son.

p.s. if you open a stocks and shares isa, gains on any shares you put into the isa, are tax free.
Not all shares can go in an ISA, but XEL can, and i believe DPL can, but not certian on that.

Dont forget to please do your own research, and not take what people say as gospel.

Only invest in shares what you can afford to lose, it can happen! The price of shares can go down as well as up... up as well as down.


Bungee
1 Like #7
^^^ I would invest it.
Except i would put it into LLoyds (LLOY) and then forget about it*

2012 will see the shareprice pick up again + they will start paying dividends again aswell so more income.

*i say forget about it, dont do that, its worth keeping an eye but you dont really need to worry much with it :P

Edited By: Jetpac on Jan 10, 2011 20:40
1 Like #8
BungeeUK
Have you thought about shares as an investment?It depends on the level of risk vs reward that you are willing to take, and when your son needs the money.I have investments in shares, and am invested in Gulf Keystone Petroleum (GKP) and Xcite (XEL). Both have done well recently, and I feel have a great deal further yet to go. I am neither a financial advisor, nor advising you in any way to purchase shares. However I believe in todays financial economic climate, the stock market to be a good place to put your money.If I was investing for my son / daughter I would consider these two, but probably put it into a company called Dominion (DPL)http://www.iii.co.uk/investment/detail?code=cotn:DPL.L&it=leFrom the link above ou can find a wealth of information, i reccommend clicking on the filter button, and filter on 5+ to get rid of most of the chitter chatter.Posts by Gramacho, Scaramouche, and Hub to name a few are a good read, and provide a wealth of useful informationOnce again I am not reccomending these shares in any way, and not providing financial advice, but reminding you of an alternative investment choice.I hope you find the right investment for you and your son.p.s. if you open a stocks and shares isa, gains on any shares you put into the isa, are tax free.Not all shares can go in an ISA, but XEL can, and i believe DPL can, but not certian on that.Dont forget to please do your own research, and not take what people say as gospel.Only invest in shares what you can afford to lose, it can happen! The price of shares can go down as well as up... up as well as down.Bungee

THIS
#9
Just open up another regular saver account with somebody else as the trustee, other parent, grandparent, family member etc.

dougys123
hes only 2, I had a regular saver with halifax paying 6% for a year which goes into a save4it account with then pays 1.05% there after. Halifax said that the regular saver would then be set up again for year 2 getting 6% on the money. I popped in today to get the book updated and they didnt set up a new account for the regular saver for the second year, the rate dropped to 1.05% in the regular saver and was transferred to the save4it account at 1.05%. Can I just open another account again? take what i have and invest into something like premium bonds? (hope all that makes sense)
#10
Can I ask a stupid question and ask where I could purchase shares from officially.


Plus my dad works at lloyds, could he get them cheaper but in my name?
#11
golemsmate
Can I ask a stupid question and ask where I could purchase shares from officially.


Plus my dad works at lloyds, could he get them cheaper but in my name?


There are many brokers out there...Banks being one of them. Barclays etc

Now http://www.iii.co.uk are one of the cheapest around, followed by Hoodless Brennan. These vary in trading fees which are illustrated on the iii.co.uk site. I happened to open one with Barclays but might soon start using iii.co.uk as people on here have recommended using it and they are slightly cheaper.

Hope that helps
#12
Jetpac
^^^ I would invest it.
Except i would put it into LLoyds (LLOY) and then forget about it*

2012 will see the shareprice pick up again + they will start paying dividends again aswell so more income.

Jetpac, did you invest in LLOY or are you still waiting for another decrease?
*i say forget about it, dont do that, its worth keeping an eye but you dont really need to worry much with it :P
banned#13
£4K? I'd invest in the FTSE

Well, you should have done it 18 months ago but it's t around 6000 now. End of 2011 should be about 6700 and then growth from there.
#14
There are a number of places you can buy shares, inlcuding your bank... just google "buy shares". I use http://www.sharecrazy.co.uk

It is likely that your father can buy shares at a preferential rate if he is a permanent member of staff, however I dont know this for sure. But also likely you or he will have to hold for a set period before selling. Lloys is a long term buy in my opinion.

AS ALWAYS PLEASE DO YOUR OWN RESEARCH, THIS IS NOT FINANCIAL ADVICE, I AM NOT A FINANCIAL ADVISOR.
#15
BungeeUK
There are a number of places you can buy shares, inlcuding your bank... just google "buy shares". I use http://www.sharecrazy.co.uk

It is likely that your father can buy shares at a preferential rate if he is a permanent member of staff, however I dont know this for sure. But also likely you or he will have to hold for a set period before selling. Lloys is a long term buy in my opinion.

AS ALWAYS PLEASE DO YOUR OWN RESEARCH, THIS IS NOT FINANCIAL ADVICE, I AM NOT A FINANCIAL ADVISOR.


Hi BungeeUK,

Those companies do look good what you posted :) Will do some research into them as they look a really good buy. What are your views on the banking sector? I was thinking LLOY and RBS seem good buys for the long run?
#16
Apologies, that should be http://www.sharecrazy.com
#17
In all honesty Lloyds looks good, however I dont know their ins and outs.
I am a high risk investor, and concentrate mainly on oil companies, those being GKP, XEL & DPL.
DPL could be the next GKP, or even the next XEL, not the banking sector, sorry.

£10k invested in XEL in 2009 would be worth £1.3m if you invested it at approx 3p, in an ISA.

or £10k invested in SEY would be worth about £5k, you need to do your research. Its all about research, timing, and balancing risk with reward. Never invest what you cannot afford to lose. Do not gamble the roof over your and your families head.

GKP have a ton of oil and the share price will come good if / when Kurdish Exports resume. In my opinion it is only a matter of time.


Check out the GKP, XEL & DPL boards on http://www.iii.co.uk,


Apologies for being unable to assist on the banking sector... you would be best off checking the iii board for lloyds
#18
I would deffinetly say premium bonds would be the way forward. Shares are only any good if you can afford to loose the money, as it is a big gamble, as companies can go bust at any time.

my granddad set up premium bonds for me and my sister when we were born, as well as a child trust fund (way back in the 80's) and we got better returns on them, than the shares that were purchased on our behalf.

plus with the pb your son has a chance of winning a million £ lol.
#19
Skippydoo, goodluck investing, i hope you do well and leads to prosperity for you and your family!

DCX Badass, when the price is low, its a good oportunity to average down, - but depends on the company and their unique circumstances.


Message to everone:
Dont forget, if you invest £100, and it costs £10 per trade, you need a 20% increase to get 2x£10 back for one buy and one sell. Always leave yourself enough in your bank account to pay all your bills, put food on the table, look after your family... school clothers, and fun days out for you and the kids! and enough to facilitate good cashflow etc etc.

Dont gamble money that is not yours, dont hide it from your spouse, dont risk all, and dont treat shares like monopoly money. Dont lose your money and your family!!!!! Family is everything, and the key to happiness, not money.

**AS ALWAYS DO YOUR OWN RESEARCH, THIS IS NOT FINANCIAL ADVICE, I AM NOT A FINANCIAL ADVISOR. THE DECISIONS YOU MAKE ARE YOURS AND NO-ONE ELSES

Bungee.
#20
APOLOGIES FOR THE CAPITAL LETTERS, I AM NOT SHOUTING :-)

PREMIUM BONDS ARE GOOD IN THAT YOU NEVER LOSE YOUR INVESTMENT, HOWEVER AS PRICES GO UP, IF YOU DONT WIN, YOUR INVESTMENT ACTUALLY SHRINKS IN TERMS OF WHAT YOU CAN BUT. £10K OF PREMIUM BONDS IN 1970 COULD BUY A LOT MORE BACK THEN THAN £10K NOW.

ALSO WITH LOWER INTEREST RATES, THE TOTAL PRIZE POOL IS A LOT LOWER.

YOU MAY WIN BIG, YOU MAY WIN NOTHING. I USED TO HAVE PREMIUM BONDS... BEEN THERE DONE THAT.

PREMIUM BONDS ARE GOOD IF YOU WANT A CHANCE EACH MONTH TO WIN BIG, WITHOUT LOSING YOUR INITIAL INVESTMENT.

PREMIUM BONDS DONT OFFER THE POTENTIAL I LOOK FOR.

EVERYONE IS LOOKING FOR DIFFERENT RISK LEVELS AND DIFFERENT LEVELS OF REWARD. EACH TO THEIR OWN.


GOOD LUCK TO EVERYONE WITH THEIR PREMIUM BONDS!
APOLOGIES FOR THE CAPITAL LETTERS, I AM NOT SHOUTING :-)
#21
Buy a plot of land here and wait for the big Boom!

Safe as Houses
1 Like #23
SkippyDoo

Jetpac, did you invest in LLOY or are you still waiting for another decrease?


I invested in LLOY a while ago in the 50s and sold in the 70s currently im in mining companies and am not planning on trading LLOY.

However, I watch my shares every day and trade in and out. LLOY is a long term investment that regardless of the price you get in at at the moment you will see a decent gain in the coming years, so a good buy and forget share.

If you were after a slightly riskier longterm share then i would buy BEM (been in them since 7.7p currently at 42, just shy of 500% profit) but based on my own research and agreed by some others in 2015 depending on several factors £10 a share is not an unrealistic shareprice.. But then again anything could happen.

RBS and LLOY good for stable long term
Miners are good for short, medium and a couple for long.

again all in my own opinion but a view shared by most!
#24
GKP up 6.79% today (Monday 11th January 2011)
DPL up 8.53% today (Monday 11th January 2011)
XEL down 0.89% (Monday 11th January 2011)

GKP shareholders expecting big news.
#26
BungeeUK
Skippydoo, goodluck investing, i hope you do well and leads to prosperity for you and your family!

DCX Badass, when the price is low, its a good oportunity to average down, - but depends on the company and their unique circumstances.


Message to everone:
Dont forget, if you invest £100, and it costs £10 per trade, you need a 20% increase to get 2x£10 back for one buy and one sell. Always leave yourself enough in your bank account to pay all your bills, put food on the table, look after your family... school clothers, and fun days out for you and the kids! and enough to facilitate good cashflow etc etc.

Dont gamble money that is not yours, dont hide it from your spouse, dont risk all, and dont treat shares like monopoly money. Dont lose your money and your family!!!!! Family is everything, and the key to happiness, not money.

**AS ALWAYS DO YOUR OWN RESEARCH, THIS IS NOT FINANCIAL ADVICE, I AM NOT A FINANCIAL ADVISOR. THE DECISIONS YOU MAKE ARE YOURS AND NO-ONE ELSES

Bungee.


Thanks for advice Bungee! Hope the same for you too!

Will be looking into this! Keep posting any other advice :)

Good to see there are helpful people around, who offer sensible advice.

Good to see your posts pal.

Many Thanks
#27
Check out the sharedealers thread for some more good info.

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