Child ISAs

[SmallBee]

Hello

We've been given loads of cash for our little DD for Christmas & want to set up a savings account for her. After some advice from a couple of friends in the know they've said child ISAs are the best option. But there are a few out there, please can anyone give any advice on which is the best?

The Hallifax junior isa offers a good deal at the moment if you want something low risk.

www.halifax.co.uk/isas/cash-isas/junior-cash-isa/

Or if you prefer you can gamble with the stock market with a stocks and shares isa. I never done well with shares, but some people certainly do. I think you have to have a truely substantial sum to do well with stocks and shares as otherwise any growth gets eaten up with management costs.

"They have far better rates but the staff relayed how many children just waste the lot when they get their mitts on the cash at 18. "

I suppose that at some point you have to accept that your child is an adult and its their money. I can't imagine ds frittering his money way as he is so cautious, but its too early to tell with dd.

I've put DS's money in a variety of places. Some is invested in a stocks and shares Junior ISA, some in a bond and some in a unit trust from the days before Junior ISAs or Child Trust Funds.

I think there is a lot of scare-mongering about how 18 year-olds are going to blow all their money the day after their birthday. A few will be idiots, no doubt, but you've got a whole 18 years to talk to your kids about finances and influence their choices. Otherwise how would it work? Them keeping on coming back to the Bank of Mum & Dad cap in hand? Never assuming responsibility for their own money?

When I was 18 I bought a house.

oh brilliant! Thank you loads for the advice. Will do some reading up.

If your child is running wild at 18, you can always not tell them about the money. Ok you won't be able to do anything with it but it can sit there until they become a bit more sensible.

I blew cash given to me for my 18th. I enjoyed every penny... But, for that reason, and cos we can't predict how sensible our kids will be, I'd prefer to keep control of it until I decide they're mature enough and maybe give them a percentage of it for their 18th And see how they get on. Halifax have a 1 year 6% thing which is the best at the mo but you can only put in £100 a month. I think the best thing to do is find deals like that and shop around every year of so. If you leave it in a long term one and don't do any work on it, returns will be minimal. Www.moneysavingexpert.com is wonderful for advice on stuff like this!