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Which type of account is best for children?

bellini
by bellini 24 November 2010  |  Comments 2 comments  |  Love Love  0 loves

I'd like to begin saving for my (not yet born!) daughter so that she has a little stash of savings for when she gets to 18, but I'm not sure what type of account to open for her?

Appreciate any suggestions

Thanks

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Comments (2)

  • MikeGG1
    Love rating 824
    MikeGG1 posted

    Bellini

    Congratulations!

    Currently, if you provide the investment, once the investment income exceeds £100 per year, it will be regarded as yours for tax purposes.

    The Child Trust Fund removed this for contributions up to £100 per month. This has now been withdrawn and a new regime is due which is a Child ISA. Hopefully, this will include similar provisions, although without the government contributions. I would wait to see what transpires from that. It is due next year.

    If you are investing for 18 years then Equity investment should predominate. For smallish amounts, an All-Share Tracker or Exchange Traded Fund would be best.

    Mike

    Posted on 24 November 2010 | Love Love  0 loves Report
  • bellini
    Love rating 78
    bellini posted

    Thanks Mike, that's great advice. Will wait to see what happens with the child ISA - so glad the CTFs are being replaced by something but it's a shame about the contribution going.

    Posted on 26 November 2010 | Love Love  0 loves Report

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