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Savings account for new grandchild

(10 Posts)
recklessgran Mon 16-Oct-17 13:10:09

We are expecting a new grandchild imminently and would like to save a small amount each month for her for when she reaches adulthood. DD is unlikely not to touch it at some point if needed, so don't really want her to be overseeing the money. We will of course be helping out with new clothes/shoes/toys/activities in the normal grandparenty way throughout. This is just a bit of an investment for the future - any ideas what would be best? [BTW thinking about £25 per month so not a large sum.] Hoping it will have built up and be useful for driving lessons/University or something along those lines. Thank in advance!

specialsubject Tue 17-Oct-17 16:22:37

Your issue is inflation which will destroy it.

Pension plan?

biffyboom Tue 17-Oct-17 16:30:08

I didn't think anyone can open an account without the childs birth certificate. Also, there are limits on what can be saved as it can be taxed if over the limit.
Pretty sure there's info about it on the mse website.

biffyboom Tue 17-Oct-17 16:31:45

Also, there are accounts that are untouchable until the child turns 18. This is what we are using for our children.

TheNoseyProject Tue 17-Oct-17 16:34:47

My in laws opened pensions for our kids. Very generous, they’re fab. A pension is much better as with a savings account you get an 18 or 21 year old suddenly with a lot of cash and even with the most sensible kid a fair proportion gets burnt through and fast.

A pension however gives them financial stability as an adult and more freedom. The kids ones come available when they turn 55.

TheNoseyProject Tue 17-Oct-17 16:35:30

If you want to do savings put it in an isa in your name and gift it to them once they’re old enough to start managing it themselves.

bedtimestories Tue 17-Oct-17 16:38:03

We save for our children but it's in our names to give them when they need it. As another person posted £25pm over 18yrs is over £5k which can be lethal in an 18yrs old hands

SellMySoulForSomeSleep Tue 17-Oct-17 17:47:41

I opened a children's isa with nationwide for my DD. I did it online and I'm pretty sure a birth certificate isn't needed. They can get it when they are 18. I'm putting a small amount in every month by standing get order.

SellMySoulForSomeSleep Tue 17-Oct-17 17:47:44

I opened a children's isa with nationwide for my DD. I did it online and I'm pretty sure a birth certificate isn't needed. They can get it when they are 18. I'm putting a small amount in every month by standing get order.

JoJoSM2 Tue 17-Oct-17 21:20:47

Depending on your age and earnings, I'd also recommend putting it in you pension or and ISA (not cash, definitely stocks and shares to at least keep up with inflation). That way, you'll retain control of the money to give away when needed.

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