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Q&A on how to save for your children's future

(36 Posts)
ShadeMumsnet (MNHQ) Mon 22-Aug-11 11:08:36

We've got Barclays saving expert Andy Gray to answer any questions you have about saving for your children's future and to talk through some of the saving options out there.

Please post your question here by Thursday 25 August and we'll have the answers back for you by 12 Sept.

Yawner247 Wed 21-Sep-11 14:47:00

Its taken ages to find this grin now I won't lose it blush

ShadeMumsnet (MNHQ) Wed 14-Sep-11 12:32:39

Please find saving expert Andy Gray's answers here.

GeraldineMumsnet (MNHQ) Wed 14-Sep-11 09:23:42

Hello, we're just finishing the page with the answers, it should be live later today and we'll post to let you know and link to it.

BumptiousandBustly Wed 14-Sep-11 07:24:37

Anynews mumsnet? I am really looking forward to the info on this, so just hoping it hasn't been forgotten?

HonestlyBanking Sat 27-Aug-11 19:50:24

Why do you charge (along with the other banks) so much for your CTF? The 1.5% is not the total charge as you don't show the TER (total Expense Ration) or the turnover rate of the investments (where you profit each time as well). As a guide you are charge twice the amount a reputable stockbroker would charge for a managed portfolio. Can you tell us your total profit and margin on these products?

ShadeMumsnet (MNHQ) Thu 25-Aug-11 12:14:47

This thread is now closed to questions. Make sure you check back on 12 Sept for answers from Barclays saving expert, Andy Gray.

wahwahwah Thu 25-Aug-11 10:13:47

We have CTF set up and pay £100 pcm - CTFs are ending soon. Best to go into the new ISAs or set up a pension (or both)? When will we know about the childs ISAa? Can we keep the CTF or will the money be moved to another wrapper?

crazymum53 Thu 25-Aug-11 09:32:27

I don't know what sort of account it is. I have asked the bank but they say that "in the interest of customer confidentiality" they can't tell me (or my daughter either)!

NormaSnorks Wed 24-Aug-11 17:16:19

Sounds like the GP one has been opened in trust or something - don't know much more than that I'm afraid....

HarrietJones Wed 24-Aug-11 15:03:02

Crazymum- is it actually a children's account?

proudmum74 Wed 24-Aug-11 14:28:00

We're trying to set up some sort of fund to support my disabled baby daughter when she is older, should she be unable to work. What is the most effective way of doing this? Our local barclays bank has talked to us about normal saving accounts, but these don't allow us to save enough in them, or offer enough interest, to provide a realistic level of support. What would you suggest?

crazymum53 Wed 24-Aug-11 14:04:46

Can you clarify the differences between a children's account opened by a parent and a grandparent please ?
The building society account we opened for our dd allows her to access her own money when she is 7 years old and transfers to an adult account when she is 16. No other adult (even a parent has access to this money). However the account opened by her grandparents allows them to withdraw money (she has no access) and they say that she won't have access to her money until she is 25. Really don't understand why there are 2 sets of rules - please help?

NormaSnorks Wed 24-Aug-11 11:57:11

For those saying 'what to do with a lump sum, without putting it in equities' - NS&I's inflation-linked bond looks like quite a good bet at the moment, and can be opened for children from 7 years old.

Pays RPI + 0.5% (and of course RPI is currently about 4.5% or higher?).

It's for five years, but can be withdrawn after 12 months with a reduced rate of interest. I'm thinking of sticking about £5K for each of the DC into one of these.

Oh, and it's tax free,, so no bother with accounting for whose interest it is...

HarrietJones Tue 23-Aug-11 20:35:10

Mercedes- the benefit people expect you to do it.

Only my youngest has a CTF (£50 one from last year) , my elder 2 have children's savings accounts. They have approx £4k each from an inheritance but earning minimal interest, how should they be invested to get max interest ( but low risk as they are likely to need it in6/7 years.

aubergine70 Tue 23-Aug-11 20:29:05

My parents have put away quite a lot of money for my DD in her name. I've divorced her father and rewritten my will but can a 9 yo write a will too just in case?

Mercedes519 Tue 23-Aug-11 20:17:09

What are the rules for spending money that is in an account with DS's name on it? I understand it is his money but if we needed it to pay the mortgage or something else that isn't directly for him but does benefit him (i.e. Keeping a roof over his head) is this allowed? Would there be tax implications?

And how does the taxman know where the money has come from to enforce the £100 interest cap? Do they just assume it's from parental income? Is it automatic that the whole lot would then be taxed?

BartletForAmerica Tue 23-Aug-11 19:35:21

Do you think there will be an option to change our son's CTF into a Junior ISA in the future? We are concerned that banks and building societies have no incentive to attract new business to their CTFs and that they'll now not be competitive.

SkivingAgain Tue 23-Aug-11 19:21:22

DS1 will be 16 next year. We have been saving for him since he was a baby and his savings account will have about £7k in it when he reaches age 16. I think this is too much for him to be responsible for, so how do we make sure that he can't access it until he starts college/uni or needs it for a car/deposit etc.

Supersunnyday Tue 23-Aug-11 14:15:16

Do you recommend an equity or cash saving option for a child, or a mix?
Cash appeals to us as it's secure in these uncertain times, but on the other hand we don't want inflation to erode the DC's savings.

Presumably children benefit from the same £85,000 FSCS protection as adults?

Are there any indications of what the new child ISA interest rates will be? (Not sure if any providers have made announcements).

orchidee Tue 23-Aug-11 13:24:02

Could you explain in broad terms the main ways for a parent (or other family members) to save for a child's future, explaining the pros and cons of each option, and indicating who each option would best suit.

As with previous comments, I would like to save for my child but am concerned about the implications of saving in his name (pro: interest? con: access?) rather than saving myself and controlling the money (pro: control? con: interest?)

Also, it would be interesting to hear about the account types that are available in a child's name and how they (generally) are operated: e.g. can an adult operate the account and have online access etc, perhaps until the child reaches a certain age?

thank you

bittentothequick Tue 23-Aug-11 12:44:03

I have a pension for my pre-school DD Fenouille. I just picked an ethical fund with low fees but it is probably better to go see a financial advisor really.

insertcleverusernamehere Tue 23-Aug-11 11:03:05

Bearing in mind that Barclays in the UK makes most of their money from British homeowners and business owners, what will you be giving back? Will our children be able to access loans at a decent interest rate should they need one to start a business or buy their first home?

Fenouille Mon 22-Aug-11 21:42:56

I read somewhere a suggestion that parents should think about starting a pension for their children. Is this a good idea? How would I go about setting one up if it is?

CaptainMartinCrieff Mon 22-Aug-11 21:32:49

My DS is only 16 months old and doing incredibly well financially thanks to very generous grandparents. At the moment we invest a bit in his Child Trust Fund and the rest is in a savings account in DS's name but attached to my DH's bank account. Ideally we would like this money to pay for his university education (if he goes) but currently with the way these accounts are set up at 18 years old he will be in for quite a windfall (we aim to have at least £18,000 (not inc. interest i.e. we put away £1000 per year). I dread the thought of him blowing it all on something dangerous like a motorbike! Is there any such account to prevent access of ALL of it at 18. Like maybe we have to give him permission to remove money from the account until say he's 21 or 25? Or do we have to just hope he grows into a sensible, young man and spends it wisely?

BumptiousandBustly Mon 22-Aug-11 21:06:23

What is the best way to save for my two children - but still keep it in mine and my husbands names so that we control when they access it (i.e. I don't want them to suddenly have control of the money when they are 18)

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