Savings question - What do I do ?

[vinny19791]

Odd one maybe

I have an account with halifax for my daughter, its a save4it account she's had since she was born.

Anyways Im the trustee and I currently save £7.50 a week into it.

Anyway the interest rate is measly as we all know ( variable interest rate of 1.05% AER) and currently I have just over £1000 in there, and its important to me as she does not live with me and I like to think there will be a few quid in there when she's older.

She is only 8 at the minute and its always been my intention not to let her touch it until she is 21 as kids arent responsible enough at 16/18 not to just blow it. However upon reaching 16 im sure halifax just turn this into a normal bank account like easycash etc, and it has a maximum balance of £5000 up to 16

Now what are my best options for this money. Its not going to be touched so what to do?

I want a better interest rate and I also want to maintain control of the account.

thanks in advance

[98Ti]

Our kids have money going into http://www2.postoffice.co.uk/finance/sa ... ns-savings

Probably worth a look at vinny. Big thumbs up for putting a bit aside for her I don't think our kids will get it until they're 25, unless it's for a damned good reason (mortgage). I know at 21 if I was given a big lump I'd have blown most (all) of it, but at 25 I had a bit more sense.

[radddogg]

Do you have a mortgage? If so, pay this off your mortgage and overpay it by £7.50 a week. You'll be saving at over 5% and increasing every month.

[lennox1185]

I can advise on when to give it to her!

When I was 13 I was in an accident and received £7,500 compensation. I couldn't have it until I was 18 and by that time it was just shy of £8,000.

Long story short - I blew it. I was waiting 4 years for it. Car, alcohol, clothes, stupid parts for my car, more clothes, mobile phones, consoles, computers.

I had no sense and didn't value the money. I had a very good, but tight upbringing. So all the things I wanted I could finally have.

I am now 25, renting a house with no chance of saving for a mortgage. I really do value money now and had to learn the hard way.

I suggest not telling her you are saving and give it to her when she's mid 20's, unless she decides to go to uni etc and is sensible!

[98Ti]

My Mrs did the same, her olds handed over a surprise cheque on her 18th, money that they'd been putting up for her since she was born. Blew the freeking lot! Which at the time we (me and bird) didn't see as stupid and disrespectful (to her parents) but looking back now (as a parent myself) they must have been livid.

By our mid 20's the money would have come in very, very handy indeed and would have been wisely spent. Heyho, we learnt.

[Limecat]

First things first get it out of that. It is actually reducing in value year on year at 1.05%. The best returns (but highest risk, obviously) are on AIM (alternative investment market!) Currently most people are wary in the current financial climate. Ideally if you were to look into it you want an AIM share that is dual listed which means it's ISA eligable (tax free) but you couldn't have it in your Daughters name as you have to be 18+. PAF are one of a handful of ISAable AIM shares that pay dividends (good for re-investment growth rather than purely speculative).

I will personally be lobbing my full years ISA allowance, just over £10.6k into AXM. CAZA is a decent option at current price but is over-subscribed by the 'sheep'.

Something you are happy to sit on for that long leads me to 2 suggestions; TLDH and SLE. (Just to be upfront I am a shareholder in both with just over £50k in each and neither are ISA eligable at present).

Do NOT listen to anyone that tells you to buy premium bonds. Infact, punch them in the face for talking crap and suggesting a 0.75% average return. (I hold £30k worth but only as it's a 'pot' for my CGT bill this year. As an investment they are utterly CRAP!)

[TheRealStig]

Yet you drive a metro

Or is it because a metro attracts 16 year olds

[Limecat]

I think you misheard someone chief. Metros are a magnet for sixTY year olds, not sixTEEN year olds. That and rust...

Oh, another thing I didn't mention is that most share ISAs incur an annual charge, although TD Waterhouse don't as long as the value is over £5k. You'll also have dealing fees and 0.5% stamp duty on purchases!

[1234dist]

Our kids have money going into http://www2.postoffice.co.uk/finance/sa ... ns-savings

2nd

sister is a financial contrller for Sainsburys and recomended this option for long term saving.

[Sheaf]

Easy way, simply teach your kid(s) how to deal with money.

I've had access to all my money since 16/18/whenever it was and I chose myself not to touch it... I think as a kid/teenager/student I had much much less total income but as I was taught to handle money well from a very young age I was responsible with what I did have and ended uni with more savings and less debt than anyone else I know. Nor did I ever use my credit card or overdraft.

Education is the way, not restriction IMO. Otherwise you're just delaying the inevitable until she's 21.

I know people in their 20s, 30s, 40s.... hell even their 80s who would blow money if they suddenly had access to it. Age has nothing to do with it.

[98Ti]

Sheaf, I think you're a bit of a rare case tbf mate. Do you have kids? It's hard enough maintaining well mannered, repectful kids in todays society, let alone managing to convince them that they shouldn't blow that £30k bank balance when they turn 18. I think we all try to teach our children the value of money, but only the very brave or niave would be confident that a lump sum would be spent wisely.

Both mine and Mrs 98ti's parents are clever with money and always taught us (preached even) how to look after it. Unfortunately these lessons didn't seem to have any value until we were in our 20's, by which time we had matured and got over the whole retail temptation thing. Now of course I totally understand everything my parents told me and why they told me, but it took my own life lessons to "get it".

If I was a bit more flippant with my cash I'd bet you a tenner that despite parental guidance 8 in 10 eighteen year olds would blow it, but I'm not a gambilng man, and I'd bet a fiver that you're not either lol. Whether anybody agrees with me is another matter, but this is the reason why my kids will have to wait a while to get their mits on my hard earned investment

[vinny19791]

Do you have a mortgage? If so, pay this off your mortgage and overpay it by £7.50 a week. You'll be saving at over 5% and increasing every month.

thanks for the tips so far

no mortgage sadly so cant do this.....

I really dont want to " risk " the money tbh, id rather it be somewhere thats earning a decent amount of interest rather than lose money..

[Roboscot]

I had some money in premium bonds years ago and did quite well from it tbh, this was after advice from a couple of relatives who had also done well. Not as much as you may or may not get from "risky" investments of course.

I had a big payout after a motorbike accident when i was 20. I was well aware of what would be considered sensible use of the money, but instead put about a quarter of it into savings and blew the rest in a year in new zealand. Totally worth it to me tho, no regrets at all

[Dave 220]

Bit more of a risk have a look at

http://www.fundingcircle.com/?utm_nooverride=1

[Limecat]

I really dont want to " risk " the money tbh, id rather it be somewhere thats earning a decent amount of interest rather than lose money..

You currently need to be topping 5% per annum for growth. Anything less than that is a loss due to the loss of monetary value.

Even something that is supposedly classed as 'low risk' like Government Bonds ( ) I wouldn't touch with a bargepole but I suppose it's down to what you feel comfortable with.

I generally only invest in companies that have solid funding behind them, especially with oil exploration companies as the last thing you want is them running out of funds and going cap in hand doing a shares issue and diluting the price.

A lot of people wrongly look on the stock market as being some form of a casino but it is very easy to play it wisely if you spend time researching companies (trying to research a FTSE company in depth is an utter ballache so I only really research AIMs shares! ). You can learn a lot from accounts, director trades, previous industry success/failure by employees/partners etc. People that trade very frequently are generally working off market sentiment, people that hold long term are into business fundamentals, I do a bit of both to be honest and even sometimes 'day trade' upto half my holding in a long-termer so as I can basically sweep up some free shares.

I paper traded for a few years first though, basically it is as it sounds; write down a figure of starting capital and note your buys and sells in a book - absolutely NO risk as it's like playing with Monopoly money and it lets you learn things without the lessons costing you anything. It can become quite addictive though chasing the 'perfect trade'.

I had some money in premium bonds years ago and did quite well from it tbh, this was after advice from a couple of relatives who had also done well. Not as much as you may or may not get from "risky" investments of course.

The average returns were higher a few years back though to be fair.

[bjrespect]

i would love to get into this wayne but lets be ho nest im not that intelligent

all looks

[Limecat]

i would love to get into this wayne but lets be ho nest im not that intelligent

all looks

Just get down to Canary Wharf and bench press a few traders over your head until they let their insider trades out!

[bjrespect]

i think i should offer you a blow job with a wig on and you will show me some secrets

[Limecat]

i think i should offer you a blow job with a wig on and you will show me some secrets

but then I couldn't imagine that it's Gail Porter?

[bjrespect]

GAIL PLATT YOU MEAN

[radddogg]

If you wear that pink dress you might get somewhere!

When is your mrs gonna pop btw? Can't be far off now?

[bjrespect]

If you wear that pink dress you might get somewhere!

When is your mrs gonna pop btw? Can't be far off now?

no radders shes due on the 28th she finished at silver birches to day for her baby time

we had a look on your facebook and she said one of the pics of lexi was from nusery

[Limecat]

GAIL PLATT YOU MEAN

Like you have that much hair?

She reminds me of Splinter from The Teenage Mutant Hero Turtles...

When is your mrs gonna pop btw? Can't be far off now?

I dare say it may take him a while to drag her down off the ceiling for offering sexual favours to men on the Internet. So any second now I would say...

[bjrespect]

GAIL PLATT YOU MEAN

Like you have that much hair?

She reminds me of Splinter from The Teenage Mutant Hero Turtles...

you would tacle her dont lie

[Limecat]

My Ninja edit was too slow.

TBH, after 10 pints I still wouldn't touch it...

...unless she had bought them for me in which case I would have to show a bit of gratitude and all splitar5es look the same after 10 pints of Stella when beaten black and blue...

[bjrespect]

well i would tackle audrey as well 3 some fancy a tag team after 10 pints limey

[Limecat]

You've been watching some old bag mincing about with a bloke in a dress and the first thing that comes into your mind is a threesome.

[bjrespect]

hmm im worried now have you a pic of you in a dress that will make my mind up

home aloner bank /sell to google

[bjrespect]

also can you be in a bath of money

[Limecat]

hmm im worried now have you a pic of you in a dress that will make my mind up

home aloner bank /sell to google

This is about the best you will get...

[bjrespect]

OH YEAH

[Limecat]

This thread has been RUINED even more than that time I met your Mrs about 8 months ago...

[bjrespect]

This thread has been RUINED even more than that time I met your Mrs about 8 months ago...

ha ha well best get on jeremy kyle as the milkman and window cleaner have fessed up as welll

[radddogg]

This thread has been RUINED even more than that time I met your Mrs about 8 months ago...

ha ha well best get on jeremy kyle as the milkman and window cleaner have fessed up as welll

Me too, I bashed her back doors in.

[vinny19791]

epic thread