You could set them up with a savings account and pay in money small and often (children's accounts don't always pay the best interest)building society would probably be a good place to start asking questions. If you've got a lump of money that you can tie up they'll get a better rate of interest. Sorry, don't know much, only what i've done with my kids savings over the years.
We have BS accounts in the names of our grandchildren; the latest one is with Halifax which we found using moneysavingexpert website. You need to make (via their parents) a tax declaration so that tax is not taken from the interest. Rates are pretty poor and they do change so keep looking in case you can get a better deal elsewhere. Our other grandchildren all have accounts with Northern Rock (now Virgin) which has been a steady 3%. We have control of the accounts and pay in a regular sum each month. moneysavingexpert
Halifax is still the best but needs checking after 12 months.
Go to any of the comparison websites and see which accounts are currently offering the highest interest rate. Our daughter has a Skipton savings account giving just over 3%. Halifax currently have a 6% regular savers account, max £100 a month for a year.
There are also some child ISAs with higher rates, but they come with strings including not being avaialble if they already have a CTF.
If you have many years a shares type investment may get better returns.
------------- Love a lot. Trust a few. But ALWAYS paddle your own canoe!!
Minds are like parachutes:- They only function when they are open!!!
Those who talk don't know.
Those who know don't talk.
I have a Halifax 6% saver for my daughter, but that's only for a year, then you've to move it and open a new 6% saver for the following year if its still available. I do this and then move the accumulated amount into her Nationwide 90 day saver which is currently offering 2%. She did have a tesco bond, which was over 3%, but this year that has gone down to 1.75%. Whatever you do, you're not going to get much at the minute...do they have child trust funds, because you can always pay a regular amount into them? I don't know how shares and things work with relation to children, but I have her CTF invested in shares.
I have just (yesterday) done this very thing. First though I did make a boob. I automatically opened an account with my own bank - one that I have been with since earth was formed - only to discover upon reading up that night that the rate was abysmal compared to other banks - did not proceed!
Yesterday I opened an account giving 3% interest. I could have got a bit better with other accounts but I wanted a simple savings account that could be accessed if ever there was a need (who knows - example - an expensive school trip right in the middle of a burst boiler disaster). Ive set up a standing order and will now forget all about it till he is 16!
On another note, being the first grandson and nephew - much awaited - he has been given every toy known to man (and he is only 2). Last Christmas I didnt give a toy, instead gave a premium bond. This year I am doing the same. The other gran has decided to do the same this year, and I think till he is much older we will be following the same vein, very cheap gift and a premium bond for Christmas.
I think it is a better idea to have the money come out later I was lucky enough to have had money saved up for me by parents and grand parents and they came out at 16 and 18 and I wasted the lot, I was too young for money just to be handed to me, it would have been more beneficial at 21 but even better at 25 but no one knows what the future can hold
A day of all things motorhome and campervan. The show is held both in the main indoor arena and across the grounds. Catering, hot drinks and food options are available. Easy access to the site and free parking included. Win one of five pairs of day tickets
Topic: Savings For Grandchildren - Help
