It doesn’t matter if you’ve won the lottery or you’ve got a pound in your packet there are so many ways that you can save for your child that it doesn’t have to be a financial strain on you or the rest of the family. You don’t have to put away a lump sum straight away you can save a small amount each week or month and watch it build up over the years.
Children’s savings accounts are an extremely useful way of saving. They operate just like any normal savings accounts and they’re great if you hit any sort of financial hardship as you don’t necessarily have to save regularly, you save as and when you need it. Until the age of seven the savings account will have to be in your name though with your child registered as a beneficiary; once they reach the age of seven it can be changed to be solely in their name. Saving for your children when their still young is a great idea because most banks and buildings societies offer much better interest rates and other deals on children’s accounts than they do on adult accounts.
Regular savers accounts are a really good way of getting into the discipline of saving and your child can also join in too. A regular saver means that you have to put a certain amount (of your choice) into an account each month; usually you cannot withdraw from this account at any time until the end of the term. If you miss some of the monthly payments then the account will usually be changed into a normal savings account where the interest is lower. A regular saver is a great way of encouraging your child to save their pocket money as they get older. If they are made to save a certain portion every month it will teach them the value of money and then they may be able to buy that special toy they’ve wanted at the end of the year.
Fixed rate bonds or junior isas are a great way to earn a high interest over time. With a bond you can pay in a lump sum at the beginning and watch it increase as the interest is added. Some bonds last for twelve months whereas others last until your child turns 18. The only problem with a bond is that if you hit financial troubles then you cannot access the bond until the end of the term, however, you can add to it whenever you like.
A Junior ISA is a great way to save up a lot of money for a child in order to help with university fees, buying a house or even getting married, in order to get the best from your money make sure that you compare all of the available accounts in order to get the highest interest rate.
Charlotte Hatton writes articles on Junior ISA savings and investments on behalf of www.thechildrensisa.com