Where do you save your children's money?

[Rumbled]

DS doesn't have a Child Trust Fund, but he does have six years of Child Benefit and a bit of money from a great aunt's estate in a bog standard (rubbish) savings account, in mine and my ex's name.

Our plan is to transfer it into a better savings vehicle, and in my name only.

My dad has suggested this five-year fixed rate bond. I favour something a bit shorter-term - maybe three years - in case we lose out if interest rates finally go up.

I figured DS wouldn't get good interest with a kids' account and, TBH, and I don't really know what's available for kids. And I'd like to keep it in my name - but then he has to pay tax.

Argh. Don't know quite what to do. It's his university fund, effectively, so doesn't need to be accessed for years. What would you do?

Thanks.

Bump.

How old is your DS? If he is under 16 then he can have the account in his name with you as a trustee and then he won't pay tax.

I've recently taken out bonds with the Skipton building society.

I can't remember the details exactly but a proportion of it will be returned to me, at 6% interest, after 12 months. The rest has to stay in for 5 years at a rate which tracks the FTSE, whatever that is.

Mine is a university fund, so we don't need if for years. My two are 11 and 7.

Thanks for posts. DS is almost six.

Some useful ideas. Like you Merle, the money isn't needed for years. I take it your bond is not specifically geared towards kids and that it's in your name and you pay tax on the interest?

Will have a mull ...