Children’s saving accounts

[Lloyd Jerrey]

What do people use to save for their children?

 

Premium bonds, ISA’s, Investment ISA (what risk category?) junior ISA’s etc?

 

Lump sum of about £4,000 already and will add £100/ month for approx 20 years.

 

Any help much appreciated

[Steve Bullman]

Junior isa for my new’un. Not sure what the other ones were. One matures this year though 

[daveatdave]

I don't know what interest you get on them but there is talk of negative interest on cash accounts at the moment

[Paddy1000111]

Depends on the amount but I have always stuck with premium bonds. I made over £1500 in winnings last year but I did have one month where I won £1125. I won £125 this month. I put money in there for a year originally to see what would happen and it's been my best account by far! 

If it's a smaller amount with current rates you need to work out how much it makes and take a risk. I would rather stick money in an account that has the chance to make them £1m than make them a measly £300 in interest over 10 years! 

[topchippyles]

1 hour ago, Paddy1000111 said:

Depends on the amount but I have always stuck with premium bonds. I made over £1500 in winnings last year but I did have one month where I won £1125. I won £125 this month. I put money in there for a year originally to see what would happen and it's been my best account by far! 

If it's a smaller amount with current rates you need to work out how much it makes and take a risk. I would rather stick money in an account that has the chance to make them £1m than make them a measly £300 in interest over 10 years! 

Been looking at premium bonds paddy as got 10k sat in post office getting 0.2% interest.Not being nosy but would 10k get some sort of return do you think. I know its only prizes 

Edited March 31, 2021 by topchippyles

[Unframed Dave]

6 hours ago, topchippyles said:

Been looking at premium bonds paddy as got 10k sat in post office getting 0.2% interest.Not being nosy but would 10k get some sort of return do you think. I know its only prizes 

Based on my own winnings, you'd get around 0 - 25 a month. 

 

The actual return is 1%, but luck is in the mix. So far this year, I'm way ahead of that so conversely someone else is way down. 

 

Dave 

[Paddy1000111]

6 hours ago, topchippyles said:

Been looking at premium bonds paddy as got 10k sat in post office getting 0.2% interest.Not being nosy but would 10k get some sort of return do you think. I know its only prizes 

People ask that quite a bit when talking about savings accounts as it's a risk because you might not win anything. Just try it for a year and see what happens. A 0.2% account over a year with 10k will generate £20. If you win a prize once it's £25. At £20 a year you aren't risking much with a chance to win £1m. I have the maximum amount you can have in premium bonds and I win 0-6 prizes a month with on average 3 £25 winnings so there's no reason over a year you shouldn't win once

[Bunzena]

As Steve says - look at a Junior ISA - or similar.

 

The interest rates on a Standard savings accounts are really poor.  Barely above inflation - assuming you believe the figures quoted for inflation!   

 

There are quite a few online providers of ISAs.  One that is consistently 'recommended' [e.g. by MoneySavingExpert] is provide by A J Bell.  

 

They also have some really good explanatory guides on their website for people [like me] that struggle with all the fancy terminology.  I'd say it was worth a look.

 

 

 

[Steve Bullman]

I’d consider buying £100 worth of low value crypto. I laughed at a guy 8 years ago for buying them. Who knows what some ultra low coins could potentially be worth in 18 years time for the sake of £100. Worth a gamble 

[mattyboy]

Buy small amounts of crypto on a regular basis is my best advice. Btc is at 60k usd at the moment and likely to go to 300k some point this year before retracing down. It is of limited supply like gold/ silver which is not true of gbp and usd which they have printed more of in the last year than they ever have and have so devalued every pound or dollar that is in existence leading to a risk of hyperinflation.