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Hi,
I’m looking to make a savings account for my soon to be 2 year old son.
Would a S&S ISA be preferable to the offerings from NS&I etc? Any recommendations?
Thanks
I lost a grand or two for each of my kids by buying the hut group and cineworld in an AJBell kids ISA 🙂
Depends what you are looking for - J-Isa's look OK, but bear in mind that the child gains full access at 18.. A cash saving version account will be significantly hit through inflation over the next couple of decades, but can install a positive routine of saving.
We have a newborn and the route we've decided on is to open a new ISA in my wife's name in April for the laddie. This will have the price of a new bike dropped into to a generic global tracker fund. The account will be kept secret from the kid 'till he is in his 20's 30's and about to buy his fist home. I don't expect it to cover a full house deposit, but hopefully go a significant way to helping.
As someone who had access to one at 18 and spent it all (not wasted, but it was spent) before I started thinking about buying a house - I could never recommend putting it in one that they have access to at 18
Imo much better to quietly save/invest and tell them it'll be there for when they need a deposit. That'll have a significantly better impact on their life!
the route we’ve decided on is to open a new ISA in my wife’s name
Seems an odd idea. Surely there are loads of downsides to that...
Especially given that:
The account will be kept secret from the kid ’till he is in his 20’s 30’s
Why not just open an ISA in the kid's name and not tell them about it?
Seems like a good swap. I'd go for it.
Kids stocks and shares ISA. We use HL and put a bit in each month. Should hopefully beat cash and NS&I over a decade or two.
Thanks every a lot of ideas for 6 replies. I’ll have a dig on money saving expert.
Just remember, that with a Junior ISA, not only does the child gain control at 16 and can access the money solely at 18, you can’t get at the money until then either. Once it’s in, it’s in and locked up till the child becomes an adult.
So if you think there’s a scenario where you might need the cash in the interim (say, school fees), don’t use a Junior ISA.
Personally, I took several approaches, one ISA I control, a normal cash savings account for each kid, and a JISA (originally Child Trust Funds) for each kids. They stick money in the cash accounts and learn saving, I put money in the ISAs. I can get at some if I need it, and they get a lump sum to piss up the wall later.