Saving money for child’s future - where to save?

[Cocacolathanks]

Hello,

This might seem really stupid but I’ve only just realised how financially ignorant I have been. I live comfortably with my husband and 2 kids but we have minimal savings, maybe about £3000 currently. Covid hasn’t helped.

I’ve decided I should do more for my children so that they have a sum of money when they’re older. I don’t know how naive this might sound but I don’t want to get into any interest-related schemes/cards.

I was thinking of opening a normal bank account (maybe under my own name) for both kids (or possibly one account for both which I can later split up) and just adding even £1 every few days, wherever and whenever I can.

How should I do this? Do I open a specific savings account (don’t they involve interest payments?) or shall I open a normal account?

Interested in hearing how you all save for your children!

thank you

The Halifax account a PP mentioned is market leading in terms of interest but you might find it tricky to set up. Their regular children’s savings account is still far better than a ‘regular’ account as long as you are happy to be receiving interest.

Try NSI children's jisa. They are paying 3.5 % at moment
Or try a stocks and shares kids jisa if you are ok with some risk.
Whatever you decide, definately do sonething. You will not regret it.
I am about to hand over £30k to soon to be 18 year old by saving £100 a month for her since birth.
So so pleased i did as i didn't really miss it in the end and it will really help her now.

@PiggyPokkyFool

Hey, sorry I have just been skimming through the answers (will read properly after the children’s bedtime - it looks very interesting!) so I missed some questions.

Yes, I want to avoid interest for religious reasons and Islamic banks are also an option, yes I think premium bonds are also related to interest but I will look into it further!

Many thanks to everyone who has replied - I will respond as soon as the kids are snoring!

I would think really carefully about setting up an account that your child gets access to at 18. I know there are many sensible 18 year olds out there, but I also know many, many more 18 year olds who like a good time and if they were given £30k, they would probably piss a good portion of that up the wall. There is no way I am saving hard for my child to go out drinking every night!

Really good idea to save for your children’s futures if you can afford to, but imo, it’s definitely worth having the money in your name to give them when they need it, rather than because they become a legal adult.

I agree pp. Further to that I have a bastard xh who would happily trick my kids out of the money I'd saved and piss it up the wall for them.

www.alrayanbank.co.uk/savings/
Try these - lots of great options and though you are not guaranteed a return they have never historically failed to deliver and all can be done online. I know lots of people who use and trust them.
From their website:
Our Sharia compliant savings products let you profit from your savings while remaining true to Islamic teachings. We do not offer you interest on your savings, instead, we undertake ethical, Sharia compliant activities with the intention of generating profit, which we then share with you.
Any queries, just ask

We consciously avoided the options where the sum automatically switched to the kids ownership at 18 too - whilst you hope that your kids will be sensible, you just don’t know where they will ‘be’ at 18 and we wanted to keep control so that they don’t piss our hard earned money up the wall quite frankly. It’ll be released to them for ongoing education or a property purchase.

Defo a bonds acc

Yes about transferring the money at 18.

My kids both have premium bonds to which money is transferred on a fairly regular basis as and when it is available. My older DC also has a stocks and shares linked ISA that they cannot access until they are 18. I pay into it monthly. My younger DC will inherit a fair amount whereas my older DC will not, hence why only one of them has this account.