Best ISAs

[moonlight1705]

We have set up a regular saver for my DD in her name which she will get at 18 but I'm also setting up an ISA in my name but with the intention of putting in all of her Christmas and birthday money in just in case she needs something earlier than 18 or we can hold onto it for her for a house deposit.

What would be the best ISA to do this? I do not currently have another ISA and don't mind if its fixed term as do not need easy access.

Bump!

Look money saving expert website

How old is your DD now?

You have not mentioned a Junior ISA... any reason why you would not use one of those in her name?

Cash ISA's are not needed these days for most people as we all have a Personal Savings Allowance. So look at Stocks & Shares ISA with a well diversified mutual fund inside it. However time period needs to be over 5 years... thus why knowing how old your DD is now is important.

Are you needing to keep things out of her name for any particular reason, such as you don't want her to suddenly come in to quite a lot of money at age 18?

There are lots of sites with info about the different types of savings available for children and many have Best Buy tables.

Junior ISA: moneytothemasses.com/quick-savings/parents/best-junior-stocks-and-shares-isa

Children's accounts: moneytothemasses.com/saving-for-your-future/savings-best-buy-tables/childrens-accounts

For easy cash access in your name, I would use your Personal Savings Allowance and have an account such as Marcus (currently 1.35% AER). You if a higher rate tax payer and this is your only savings account, then you could have £37,037 in that (which would get £500 of interest) and be within your Personal Savings Allowance.

For a higher return, you can use a With Notice Account. These may be 90-120 day noticed needed to withdraw. They can pay in the range of 1.5-1.7% AER. So not a huge amount more and the delay in getting money out may be inconvenient.

Thanks nannynick for your advice. DD is only 10 months old and we are thinking about parcelling money out for the future.

I am worried that when she gets to 18, she will blow all the money (obviously will try and educate her but you never know) but this way she will have half the money at 18 and the other half to save for something big like a house or a car. I will look at the Junior ISAs as well and the Marcus account.

Using a combination of different products you can provide her with access to some and keep some back. As you have a long period of time involved, you could use your ISA allowance to invest your money and allocate it in your mind to her. You could use a Stocks & Shares ISA from a low cost provider such as Vanguard and invest in a globally diversified mutual fund at initially quite a high risk level (as you want growth and won't be taking money out for many years) and lower the risk nearer to the time that money may be taken out.

Vanguard has funds like Life Strategy which come pre-packaged and they self balance, so are a set and forget option. Cost though for that is higher than having something like L&G International Index.
So you need to research Platforms and Funds.

This is a podcast episode about Platform selection, it's over 3 years old now but may be still be useful: meaningfulmoney.tv/2016/08/03/choosing-a-platform-season-2-episode-5/
Here is a podcast about choosing a Multi-Asset fund: meaningfulmoney.tv/2017/01/18/how-to-choose-a-multi-asset-fund/

Teaching her about personal finance is the best thing to do, so that when she comes of age to receive the money she won't just go out and spend it.