Your Options when Saving for Your Child

Know your options when saving for your child so you can easily make well-informed decision.

10:10 15 April 2013

Most people are considering saving money for their children that they can use for different purposes. Some save for birthdays while others are saving for their education. Well, whatever your purpose is, there’s a perfect option that would meet your needs and preferences. These are the following:

• Easy access accounts. If you want to save for your child but need instant access to your money, this is the best for you. It will allow you to withdraw the money at anytime. However, this offer lower rate of interest compared to other options.

 

• Notice period accounts. You can also sign up for this type of account, which gives you the freedom to withdraw your money as long as you give certain amount of notice before doing so. Typically, this offers higher interest rate compared to easy access accounts.

 

• Fixed term savings. This type of savings account will require you to tie up the money for a fixed period of time, which is usually up to three years or more. However, this offers attractive interest rate.

 

• Junior ISAs. If you want to get tax relief and save for your children’s education when they hit the age of 18, this one is perfect. You can put up to £3,720 in the 2013-2014 tax year and this amount can be divided into junior cash ISA or Junior stocks and share ISA as you wish.