Compare Children's Savings Ideas
Savings For Children
1. Children's Savings Accounts
- Most banks and building societies offer children's savings accounts. The problem is that many of them pay very low rates of interest. If you want security but are not too concerned about growing capital, then there are no shortage of options. However, with many accounts paying less than inflation, in real terms your child's nest egg will lose value in real terms.
- Savings accounts for children provide a good way for children to learn how to manage money and help them get into the savings habit. Additional incentives from providers might include gifts with the account such as piggy-banks or calculators.
2. Children's ISAs or Junior ISAs
A child qualifies for a Children's ISA, or Junior ISA as they are often called, if they are under 18 and live in the UK. If you want to open a Junior ISA for your child, most ISA providers will give you this option. However, it is important to note that under current HMRC rules, you cannot have a Junior ISA and a Child Trust Fund.
- Junior Cash ISA - Junior Cash ISAs work in a similar way to savings accounts. The exception being that the interest is tax free and your child cannot access the money until he or she is aged 18.
- Junior Stocks and Shares ISA - With a Junior Stocks and shares ISA you can invest in shares, bonds and other eligible investments on behalf of your child. The value of these investments can go down as well as up.