Our friends at KidStart have given us some great advice about how to start saving money for your child(ren). Read on to see what they have to say!
At KidStart, we know that being a parent is stressful enough, so we’ve done our best to make child savings as easy as possible to understand.
We have put together a simple overview to child savings options to help you find the right account for your child(ren).
If you are a KidStart member, you can transfer your KidStart savings into any bank or building society account, however you may want to consider opening an account specifically for your child/children.
If you’re a dab hand at all of this, check out which providers KidStart work with Otherwise, please keep reading.
CTFs, ISAs and OAA (Other Annoying Acronyms)
Once upon a time, there was something called a Child Trust Fund (CTF), which you’ve probably heard of. It’s a long-term virtually tax-free savings account for children born between 1st September 2002 and 2nd January 2011.
As of November 2011, the Junior ISA has stepped in to fill the shoes of the CTF for child savings. Junior ISAs also offer virtually tax-free savings for your children, as long as they are under 18, live in the UK and do not already have a CTF.
The money that you, or anyone else, put into your child’s Junior ISA belongs to the child, but can’t be taken out until they are 18. Child savings in a Junior ISA work like any regular ISA account: grandparents, long-lost cousins, kindly strangers, friendly companies like KidStart and anyone else can transfer money into them until the annual limit is reached.
Cash Junior ISAs and Stocks and Shares Junior ISAs
There are two types of Junior ISA
1) Cash Junior ISAs (where you get paid a rate of interest)
2) Stocks and Shares Junior ISAs (where the value of your savings goes up or down depending on the performance of the stocks and shares associated with the specific ISA.)
Your child can have both of the above (or just one or the other), but the annual limit applies as a total across any Junior ISAs that your child might hold.
Savings accounts that offer KidStart savings boosters
OneFamily – OneFamily are the winner of the Moneyfacts award for Best Junior ISA Provider in 2015. £20 KidStart Savings.
Shepherd’s Friendly – Shepherds Friendly are one of the oldest financial mutual’s in the world. Experts in children’s and adult’s savings and over 50’s Life Insurance. Up to £65 KidStart Savings.
Scottish Friendly – Scottish Friendly, one of the UK’s leading friendly societies, has been helping its customers to invest since 1862. Scottish Friendly is a mutual which means there are no shareholders so all the profit made is used for your benefit. £50 KidStart savings.
Forestors – Supporting families for 180 years, Foresters boasts high customer satisfaction, and as a mutual society all profits are distributed to policy holders. Up to £33 Kidstart savings.
Please view our KidStart Savings Guides for more detailed information about child trust funds, Junior ISAs and family budgeting.
So, what are you waiting for? Click HERE to sign up for a free account at KidStart now!