Which bank account should I setup for baby?

10 replies
Found 5th Jun
As above. Looking to set up a bank account for baby to get interest on and just pay money into until he's older. Any recommendations?

thanks

10 Comments

Be careful if your baby has a lot of money. You will be liable for the tax on interest if is above a certain amount. Might be better if a Grand Parent does it. Failing that get GP to set up NS&I account for Premium bonds.

moneyadviceservice.org.uk/en/…nts

Start a small pension if you can afford it. As for bank accounts see what Martin Lewis currently says on his site

Original Poster

It's only about 500 quid to start and then just putting like 50 quid in a month?

I'd recommend first direct! They are the best in terms of customer service and they come highest in the polls. If you setup a current account you can have a regular saver of up to 300 per month and you get 5% interest!

Junior ISA

A junior ISA is ok if you want the money locked away until they are 18 - bear in mind that interest rates aren't that great on cash and investing cash over that much time is not as good as the performance of stocks and shares historically.

We decided (2 years ago) to go for a Halifax Young Saver Account with a linked Regular Saver account. The Regular Saver account runs for 12 months can be fed with between £10-100 per month and pays 4% AER at the end when it then empties into the Young Saver Account and starts again. The Young Saver account pays 2% AER. Our plan once we have a good chunk in it (maybe next year) will be to then open a Stocks and Share JISA for him and continue with the Regular Saver - we would then just put each years savings into the JISA once the interest is paid. Doing it this way means he will have cash that he can access but also an investment that over 10 years plus should out perform cash. I'm hoping this will either buy him some quality life experience, education or a step at getting on the property ladder.

For my kids I do a split of half cash ISA (Halifax 3.25%) and half stocks and shares (children's savings plan with Baillie Gifford and invested in Scottish Mortgage fund)

I use the santander 123 mini account in Trust

buttonpushervic

A junior ISA is ok if you want the money locked away until they are 18 - … A junior ISA is ok if you want the money locked away until they are 18 - bear in mind that interest rates aren't that great on cash and investing cash over that much time is not as good as the performance of stocks and shares historically.We decided (2 years ago) to go for a Halifax Young Saver Account with a linked Regular Saver account. The Regular Saver account runs for 12 months can be fed with between £10-100 per month and pays 4% AER at the end when it then empties into the Young Saver Account and starts again. The Young Saver account pays 2% AER. Our plan once we have a good chunk in it (maybe next year) will be to then open a Stocks and Share JISA for him and continue with the Regular Saver - we would then just put each years savings into the JISA once the interest is paid. Doing it this way means he will have cash that he can access but also an investment that over 10 years plus should out perform cash. I'm hoping this will either buy him some quality life experience, education or a step at getting on the property ladder.



What do you invest in for the S&S JISA? I'm just currently putting it all into a vanguard lifestrategy, is that ok?

umirza85

What do you invest in for the S&S JISA? I'm just currently putting it all … What do you invest in for the S&S JISA? I'm just currently putting it all into a vanguard lifestrategy, is that ok?



We haven't started the JISA yet but I will probably go with a Vanguard fund or similar.
Post a comment
Avatar
@
    Text
    Top Discussions
    1. amazon prime question22
    2. Help! In need of a PS4 Headset47
    3. Camera lens44
    4. good place to buy stocks33

    See more discussions