General Advice | Children’s Savings Account

Hi All,
With our first child due imminently, we are looking at setting up a Savings Account for him/her for when they’re older. Starting with a small lump sum and then squirrelling away small monthly amounts.
Suggestions/opinions on the best accounts/options please.

I assume that by the term ‘older’ you mean by the time they are 18+.

Given the timeframe, I would invest in a cheap global index fund. Something like the Vanguard LifeStrategy 100% Accumulation is popular, and fee wise, you can get a 0.15% platform fee direct through Vanguard, and 0.22% for the fund itself. You would ideally want these funds to be in a non taxable account to avoid CGT as well.

Another point, as I’ve been discussing similar with friends, if you put this into a child trust fund, then they will have access/control of the funds when they turn 18. They decided, that it would be best they keep control, and could transfer funds if they needed when at a university, or kept it a few more years to provide as a deposit for their first home. Just a thought!

3 Likes