Best savings account?

I did ask this around May last year, and didn't follow it up as we put the money elsewhere.

I'm looking at the best place to put money for our kids (age 2 and 5) when they're 18. Currently about £8k between them. It needs to be in ISAs for them as otherwise I'm liable for tax on any interest (does it count as interest on S&S ISAs, or is it just CGT.. I guess it doens't matter as it's tax free there anyway)

Would https://www.fidelity.co.uk/junior-isa/#tab-link still be the best way to go, and then.. invest into Vanguard index funds (how do I determine which I want there?) ?
 
GeX said:
I did ask this around May last year, and didn't follow it up as we put the money elsewhere.

I'm looking at the best place to put money for our kids (age 2 and 5) when they're 18. Currently about £8k between them. It needs to be in ISAs for them as otherwise I'm liable for tax on any interest (does it count as interest on S&S ISAs, or is it just CGT.. I guess it doens't matter as it's tax free there anyway)

Would https://www.fidelity.co.uk/junior-isa/#tab-link still be the best way to go, and then.. invest into Vanguard index funds (how do I determine which I want there?) ?
Click to expand...
I hold https://www.fidelity.co.uk/factsheet-data/factsheet/GB00BJS8SJ34-fidelity-index-world-fund-p-acc

It'll do you well, shame you waited as you've missed about 15% growth.
 
Last edited:
  • Like
Reactions: GeX
Thanks, I’ll get that set up. I didn’t wait and miss out, bought a new car - this is a different pot to May. I’m sure by the time they’re both 18, it’ll be massively up on any cash ISA would be
 
Is there any place that shows the best children’s savings, ISA or S&S ISA?

Our 2 year old has a bit of money from family and what we have put away in a Halifax savings account but I want to try make the most of it.
 
Vanquish-Storm said:
Is there any place that shows the best children’s savings, ISA or S&S ISA?

Our 2 year old has a bit of money from family and what we have put away in a Halifax savings account but I want to try make the most of it.
Click to expand...

Not sure how it works but for something LONG term, it has got to be the stock market, as in index fund/S&S ISA probably, isn't it? Or do you want to keep it 100% cash?
 
Last edited:
GeX said:
I did ask this around May last year, and didn't follow it up as we put the money elsewhere.

I'm looking at the best place to put money for our kids (age 2 and 5) when they're 18. Currently about £8k between them. It needs to be in ISAs for them as otherwise I'm liable for tax on any interest (does it count as interest on S&S ISAs, or is it just CGT.. I guess it doens't matter as it's tax free there anyway)

Would https://www.fidelity.co.uk/junior-isa/#tab-link still be the best way to go, and then.. invest into Vanguard index funds (how do I determine which I want there?) ?
Click to expand...

S&P 500 as a stocks and shares ISA.
 
Vanquish-Storm said:
Is there any place that shows the best children’s savings, ISA or S&S ISA?

Our 2 year old has a bit of money from family and what we have put away in a Halifax savings account but I want to try make the most of it.
Click to expand...
Raymond Lin said:
Not sure how it works but for something LONG term, it has got to be the stock market, as in index fund/S&S ISA probably, isn't it? Or do you want to keep it 100% cash?
Click to expand...
As Raymond said; for growth over 18 years you'd be mad not to put it into a S&S ISA.
 
Raymond Lin said:
Not sure how it works but for something LONG term, it has got to be the stock market, as in index fund/S&S ISA probably, isn't it? Or do you want to keep it 100% cash?
Click to expand...

dlockers said:
As Raymond said; for growth over 18 years you'd be mad not to put it into a S&S ISA.
Click to expand...

I would just be looking at some form of account that I can stick the money in and forget until shes 18+ and hopefully get the best return on it. Are you also able to top a S&S ISA up yearly?

Are all the providers pretty much the same? Not going to lie I am a sucker for a good app or dashboard even though it would be sit and wait haha.
 
I have inherited £60k from my grandparents, who both died in the past year or so. We're going to need it in probably a year, as we're likely to move house.

I was thinking of splitting it as follows (my wife is financially risk-adverse, I'm not):
  • £10k in managed S&S ISA (me)
  • £10k in 1yr fixed rate ISA (me)
  • £20k in 1yr fixed rate ISA (her)
  • £10k each in premium bonds, for the opportunity
Just wondering what people think of this. I know it could all be sat in accounts getting 5%, but I find that really boring.
 
The problem with stick it all in 5% is you will need to pay income tax so it won't be 5%. I would stick the max into savings for that 5% and the rest do as you choose.

1 year isn't that long to really get any substantial gains. Max that interest payments up to £1,000 (or £500) risk free. The rest, ISA/and premium bonds. I might not even put it into S&S as it's such a short time, but a portion in it doesn't hurt (much).
 
Raymond Lin said:
The problem with stick it all in 5% is you will need to pay income tax so it won't be 5%. I would stick the max into savings for that 5% and the rest do as you choose.

1 year isn't that long to really get any substantial gains. Max that interest payments up to £1,000 (or £500) risk free. The rest, ISA/and premium bonds. I might not even put it into S&S as it's such a short time, but a portion in it doesn't hurt (much).
Click to expand...

Isn't the interest on ISAs tax exempt? It's all ISAs bar the premium bonds, which are also tax exempt.
 
Last edited:
dirtychinchilla said:
I have inherited £60k from my grandparents, who both died in the past year or so. We're going to need it in probably a year, as we're likely to move house.

I was thinking of splitting it as follows (my wife is financially risk-adverse, I'm not):
  • £10k in managed S&S ISA (me)
  • £10k in 1yr fixed rate ISA (me)
  • £20k in 1yr fixed rate ISA (her)
  • £10k each in premium bonds, for the opportunity
Just wondering what people think of this. I know it could all be sat in accounts getting 5%, but I find that really boring.
Click to expand...
I did wonder why your desire for quality went 10x in your most recent Home & Garden threads lol :D
 
Raymond Lin said:
Yes, the 5% account I refer to is the normal instant access savings one, not the ISA one. sorry.
Click to expand...

Does that change your response then? Mix of ISAs and premium bonds makes relatively good sense?

dlockers said:
I did wonder why your desire for quality went 10x in your most recent Home & Garden threads lol :D
Click to expand...

I was just being a bitch because you were mean about my car.
 
Vanquish-Storm said:
I would just be looking at some form of account that I can stick the money in and forget until shes 18+ and hopefully get the best return on it. Are you also able to top a S&S ISA up yearly?

Are all the providers pretty much the same? Not going to lie I am a sucker for a good app or dashboard even though it would be sit and wait haha.
Click to expand...
Sign up to Fidelity Junior S&S ISA
Setup an account and pay in the money
Invest into a standard global index fund - VWRP, VWRA, VAFTA. I use VAFTGAG although I am certain it was never called this before.

It sounds complicated and it can seem a bit daunting but its basically set and forget.
 
With rates as high as they are I wouldn't bother with bonds tbh. Are you in the higher rate of tax? You can get 1k interest allowance on a regular savings acc.
 
dlockers said:
I did wonder why your desire for quality went 10x in your most recent Home & Garden threads lol :D
Click to expand...

None of my grandparents had money, no inheritance lol.

dirtychinchilla said:
Does that change your response then? Mix of ISAs and premium bonds makes relatively good sense?



I was just being a bitch because you were mean about my car.
Click to expand...

Normal savings account tend to have higher rates than ISA, and it is tax free up to a point. Which was why I mentioned it. So work out the percentage of interest and the amount of deposit to get that max limit, then the rest in ISA etc.
 
Last edited:
You must log in or register to reply here.
Back
Top Bottom