which ISA?

opened one 5 years ago to give the kids a bit of wedge when they get to 18. im not one to keep checking interest rates, just thought id let it ride. latest statement came through, and on £1100, i got £2.50 interest last year!!!

rang em to find out why and basically told i should have been keeping an eye on rates. as new ones appear, old ones get rates chopped, and i should have been aware. i thought itd be fine just to leave for years and years. oh well, you live and learn :-/

anyways……….looks like ill have to open another one now, and transfer that over. so……not being very money minded, whats the best one to open? id prefer internet access to it, rather than paperwork dropping through my letterbox, but its not that important i spose.

just want a grand or so to gradually get bigger and bigger. i put about £20 a month into it, and have been thinking about doubling it.

any suggestions?

ta

See the FSA's money made clear website for unbiased comparisons.

Linky link link

you might find a regular saver account is good if you're putting money in like that – often up to 8% rates

alternitive – if you open it in kiddy's name, they won't be liable for tax on the interest anyway (I think?)

Go for fixed term bonds – that way you know the interest rate and when they mature you'll be informed.

Yeah if it's long-term for kids an ISA a/c isn't the best option.

roger, had a look at that 'money made clear' website, and er…..still confused by it all really 🙂

savings accounts? ISAs? Fixed term bonds? :-/

all i was basing it on was a quick shufty on that moneysavingexpert website, where it said that if you were saving money then an ISA was the best way to do it.

is it right that you get taxed on savings accounts but not ISAs, so even tho the savings accounts are better interest, the ISA would still give more back?

in real terms, my savings are **** all really, so its not like im aiming to make tons of cash. just the best place to put it :-/

thanks 🙂

non-tax payers can fill in a form so that the bank doesn't deduct tax

tiger, id say its medium term. kids are 14 and 12. id just like to give em a grand or so each towards a car, deposit on house or whatever when they get round to it.

and im a tax-payer 🙂

What about buying some Gold coins? – the ultimate store of value.

I wouldn't get into gold now….

You are a tax payer but put the accounts in your kids' names – well that's what my Dad did years ago.

You are a tax payer but put the accounts in your kids' names – well that's what my Dad did years ago.

The only problem with that is that the money is automatically theirs (kids) what happens if they get to 18 and decide they are buying a motorbike or something else you would not want to give them cash for.

Threaten to disinherit them?!

I wouldn't get into gold now….

Why not?

Well maybe it's overbought? Also, no return on gold just hope for capital appreciation. I think it likely that it'll fall back sometime but no idea when.

nah, not really interested in buying gold anyway. just after a decent savings account for the kids. just been looking and read that the top earner on kids accounts is 2.2%!! not very much is it! so an ISA looks a better bet. just not sure whether an ISA or higher rate savings account (where it gets taxed) is the best option :-/

id also want the option to transfer it without penalties if the rate dipped and i found a better one. will have to keep a better watch on it all really. why does it all have to be so complicated 🙂

you definitely are an ex-punk if you're posting on a MTB site asking about ISAs 😆

How about the A&L 3.2% flexible ISA: Clicky NB it doesn't allow transfers in.

Or as said above, you could open a Child's Regular saver (tax free) at 6%: Clicky

Theoretically any money you give your kids remains your money for tax purposes unless you do it through a Child Trust Fund, four to six years is a pretty short term so interest based products are most sensible if it was longer, say 10 years, then I would suggest a UK equity income fund.

juicy plum, that ISA doesnt look bad, but its A&L who im p*ssed off with for giving me 0.1% interest last year, so they can f*ck off. even tho its my fault for not keeping an eye on it 🙂

allthepies, id be even sadder if i was STILL a punk wouldnt i?? 😉

no return on gold just hope for capital appreciation.

Gold always retains its value and are far as getting no return – you get a negative return on cash as the interest rates are below the inflation rate. All paper money continuously devalues (inflation) and eventually becomes worthless. Gold has been valued for 5000 years and will probably remain so for another 5000 – or at least until the kids are 18.