Setting up a savings account for my son
- Thread starter PaulStat
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All we have done is set up a seperate savings account in our own names into which we put money for our daughter. I know this is certianly not the most tax effecient way of doing it however the payoff is that we get to control when the child has access to the account. Giving me a few thousand pounds as a 16 year old would have been a bad, bad idea. 
All we have done is set up a seperate savings account in our own names into which we put money for our daughter. I know this is certianly not the most tax effecient way of doing it however the payoff is that we get to control when the child has access to the account. Giving me a few thousand pounds as a 16 year old would have been a bad, bad idea.
I always thought you could stipulate when the child gets the money? I have no reasoning behind this, that's just what I always thought happened
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Was he entitled for Child Trust Fund?
Stick it in a building society, my daughter has a CTF and we put £50 a month into it, I allways check it every year and swap to whatever MSE forums say the best child truct fund deal is, after a year it reverts to the base rate which is shocking hoping you'll never be bothered to move it.
I get all relative to give cheques for her birthdays and we bang them in the bank for her, she's got about £3k so far which is more than me
Also don't tell her about it, let her have it when she is responsible enough to have it not when the bank tell her she can have it.
Stick it in a building society, my daughter has a CTF and we put £50 a month into it, I allways check it every year and swap to whatever MSE forums say the best child truct fund deal is, after a year it reverts to the base rate which is shocking hoping you'll never be bothered to move it.
I get all relative to give cheques for her birthdays and we bang them in the bank for her, she's got about £3k so far which is more than me
Also don't tell her about it, let her have it when she is responsible enough to have it not when the bank tell her she can have it.
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I always thought you could stipulate when the child gets the money? I have no reasoning behind this, that's just what I always thought happened
Unless it's a child trust fund I think they can get at it from 18 without your permission, that's why if you have a CTF account it may be worth splitting into a joint account with both names needing permission to withdraw
Soldato
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What about premium bonds? No interest but prizes which you can automatically reinvest (my prizes vs. investment comes out at about 5% interest).
![[FnG]magnolia](/styles/overclockers/avatars/9.png){kind=avatar}
Caporegime
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CTF plus a savings account in his name. We put $100 into our little one's savings each week.
I would be weary of child trust funds, money can't be withdraw and moved into a higher interest account. ISA's on the other hand are tax free and can provide much higher rates. Even after tax, fixed rate bonds give you a higher return than CTF's.
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Caporegime
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Can you explain further? What's so gimmicky about it?
CTF are basically dead in the water now - government have all but scrapped them.
Downside is also that no access to funds till 18, also at 18 the child/individual gets the lot. Now I think that is a bad idea because you have no idea how your kids will react to getting a few thousand pounds or so in their bank at 18!
I personally have a yearly saver account (£30 a month) that gets direct debited from my account and then on the anniversary (yearly) gets automatically swept into a savings account with a little passbook. The passbook account can be added to at any time (emptying his piggy bank at the weekend - £72!!!!!) and paid that into his account.
Account is in son's name but with me as the trustee. I can decide control when he gets the money but at the same time he can asked for the money when he's older. No age limit or ranges on the account. Think it's with HBOS.
Downside is also that no access to funds till 18, also at 18 the child/individual gets the lot. Now I think that is a bad idea because you have no idea how your kids will react to getting a few thousand pounds or so in their bank at 18!
I personally have a yearly saver account (£30 a month) that gets direct debited from my account and then on the anniversary (yearly) gets automatically swept into a savings account with a little passbook. The passbook account can be added to at any time (emptying his piggy bank at the weekend - £72!!!!!) and paid that into his account.
Account is in son's name but with me as the trustee. I can decide control when he gets the money but at the same time he can asked for the money when he's older. No age limit or ranges on the account. Think it's with HBOS.
Associate
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...she's got about £3k so far which is more than me
Dont you mean she has 1k so far and you have a new gaming rig on order?
Caporegime
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We provide substantial monthly savings in to her account (unrestricted) so no access until 18 is not a concern. 'Getting the lot at 18' - also not bothered. Is the CTF not performing well as a financial product or are the two previous points the only supposed down sides?
Soldato
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I went for a CTF Stakeholder Account with Nationwide, who use a Legal and General tracker, should see around 7% return a year but we'll see.
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I have an account for each of my children here.
My daughter's has been running for 14 years. I've had no difficulty with them, you get annual statements, and their customer service has been great whenever I've had to call.
HTH