Should I take out my children's savings?

[nickthefox]

I put in £50 for my children into a savings account in 2019.
i haven't been in a position to add to it at all.

They have made less than a pound in interest over 3 years. Should I just take it out? 50 is worth considerably less now than it did when we put it in.
I'll probably never be able to add to it.

Bump

Get premium bonds with it as you might win something.

How can you win something with premium bonds? Sorry if I sound daft

I second premium bonds!

www.nsandi.com/products/premium-bonds

You could buy £50 for each child. THey each get an investment number that goes into a draw monthly. Min prize is £25. You may never get anything but it’s worth a shot!

doesn’t cost anything. You won’t lose anything.

look up National Savings and Investments. I have posted the link above.

Premium bonds is a savings account. It doesn’t pay interest, but instead your money is put into a monthly lottery draw to win £1m. There is just as much chance of winning £1m as £25.

you can keep the money in it for years and still take out your initial investment. And if you have winnings you can either have the winnings added to your premium bond tally or you can have it paid into your bank account

There is not just as much chance of winning £1,000,000 as £25. For the June draw there were 2x £1,000,000 prizes and an estimated 4.7 million x £25 prizes.

PBS are a bit like a lottery, but your "ticket" (bond) never expires.

Also I think grandparents etc can buy bonds for your children if they ever had the inclination to add to their savings

oh wow that sounds amazing. I'll be doing that definitely! thank you everyone!

Unless you have£50000 you are unlikely to win anything. Money saving expert Martin Lewis will recommend a child's account.

I have never won a penny in 50 years of having them.

I've only got a few pounds of premium bonds, bought for me when I was born nearly 40 years ago. I have won once in all of that time, £50, and it came at a time when I was in a really bad financial situation. I felt so lucky. A nice thing to do I think if you aren't able to add to it.

If you are buying premium bonds do not buy them separately for each child. The grief if one won £1m and not the other would be too much!!

Premium bonds are extremely low return, similar to the savings account you have them in which sounds like an easy access cash account. If you want the money to grow, you need to invest it. Put it in a junior stocks and shares ISA.

I'm in month 2 of having premium bonds and won £25 this month.

I wanted somewhere I could access the money quickly if needed so chose this rather than a bank/building society savings account.

We have premium bonds from the grandparents but they have won 25 pounds in over 15 years.

Personally, I'd just take the money out and do something fun with it, if you can afford it.

Not true to say that you will never win anything with them. I know people who have regular wins, some small some larger amounts.
Not everyone can win at each draw so obviously there are going to be winners and losers. It's the luck of the draw.

Why not get some and leave them in for say a couple of years, see what happens. They can be taken out at any time with no penalties, full amount returned. If the thought of one child winning something with their bonds and the others not, then I would put the money in and have something in writing to say that any winnings have to be split 3 ways.

I wouldn't bother with 50 quid in premium bonds tbh... think you'd do better with the bank's interest in a year on that amount.

If you go for premium bonds make sure they are in your name if you have multiple children rather than split between them. It's very unlikely £50 would win anything but if it does you really don't want the headache of one child winning nothing and another getting a massive amount. If you've put it in the children's names you wouldn't be able to redistribute any wins.

Mine have an agreement that if any child wins over £100 then it gets split between them
and normally if one wins £25 I am able to just put the same amount in the others account without it being a huge burden to the families finances - I appreciate this isn’t the same for everyone but that’s how it’s done with my children

they also have a small amount in a stocks and shares junior isa but at the moment that has lost them money with the current market conditions

at least you can lose any money with premium bonds

isn't that risky? like of you invest and then something tanks don't you lose your money? I know its only 50 pounds each but it's 150 and that's a lot for me to lose

They have made a shocking 87p each since Jan 2019... so it's nothing really. In fact it's gone down In value.

With stocks and shares as long as you keep them in for the long term you should make a better profit than other options. It doesn't matter if they tank one year as they will go back up the next (you need to have selected a fund not shares in just one company) Never sell when stocks are dropping. Now would be a good time to buy as they are low at the moment.