Saving for (child's) future

[2beornot]

Hi.

I have been meaning to set up savings for dd since she was born (she is now nearly 2!), but have put it off as I'm not sure what's best.

The money will be used to help her (and any siblings) when they are older be it for a car, uni fees, house deposit etc etc.

I don't want a junior isa as it will become hers when she is 18 and I'd like some control over what it is spent on.

Am I best off just saving in my name as I do not use my tax free ISA entitlement at all? The downside to this is that if GP want to contribute (and they have hinted they might) then I want them to know that it is going to her.

Is there a middle ground anywhere. I am interested in what others do!

TIA

[2beornot]

Anyone?!

[ceeveebee]

Unless you intend to save £1000s I think you can just set up a normal savings account in her name as the first £9k or so of interest will be tax free anyway (so unless you have over about £0.5m in there you'll be fine!)

That's what I have set up for my two, just a normal Natwest junior savings account. Didn't want to lock money in for 18 years and returns so low at the moment it barely matters

We also have some premium bonds in their names

[2beornot]

Thank you. I think I will go and see what they say in the bank, but I think you're probably right!!

[bemybebe]

Just saw this. Be careful as savings accounts despite being in child's name will be taxed at parents' marginal rate. The personal allowance won't apply here. Afaik.

[Choccybaby]

They are only taxed if the interest is more than £100 in a year (if parents contribute).