Tell me about children’s savings accounts

[NC28]

Currently have money put aside every month for DS who is 3. It’s a standard kids savings account which I opened when he was born.

I don’t honestly know much about the options that are out there, but obviously want to make my money grow. The current interest rate is 2.81%.

The plan would be that when he’s an adult, he gets it, though I’m not keen on any account where he would get unlimited access at a certain age, and I’d stop getting access. Just in case he’s a bit daft later in life.

What kind of savings accounts do your kids have? Is there a better option than a standard savings account?

We ended up getting screwed over by the tax man on our children’s accounts so moved all the money across to an ISA in my name.

We have a savings account for our DD and a junior ISA. We put an amount into the savings account monthly along with most cash gifts from birthday etc. Whenever it gets over a certain amount we transfer some to the ISA. She can't touch it until she's 18 but the return is much better than most savings accounts.

Anything in your child's name will be legally theirs and you will lose control of it at a certain point - I think it's 18 but I may be wrong. Kid's saving accounts are often linked to your own bank account and aren't generally the highest possible interest rate.

If you want to keep control of it and earn the most interest then you are better off putting it in the highest rate ISA you can find (in your name). If you can be bothered moving it about you can open high rate savings accounts in your name and keep moving it when the rates change. However the interest on those accounts is not tax free.

Should also add, if you don't want them having access immediately when they turn 18, just hold off telling them about it? Yes, by rights, it's theirs, but if they don't know then it's a non-issue. Especially if it's all money you've saved for them anyway.

Op don't have one have a few if you start early get into stocks and shares isa.
Have normal savings but compounding in stocks will be magic maybe also open a sipp!

My dc have standard bank accounts and I saved up a few hundred in there, they have a cash isa which they knew about young and they know that's money for cars and driving and uni it's got around 3% on it.

Then they have stocks and shares isa in index funds which is now up 33% (tanking at the moment but still well up on the cash isa) so they appreciate all three different kinds of saving and they have a sipp.

I'm exposing them to financial education which is simple buy index funds and read or listen to some core books.