investing for children

Discussion in 'Finance, Property, Law' started by carabinier, Nov 18, 2003.

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  1. i have £3.000 to invest for my son,he's aged 13.at present the money is in a kid's account in a building soc. I'm looking to put it away for a few years so no problem tying it up. As far as risk goes I think something in the medium area. I do have a couple of ideas myself and i'm interested to see if anyone comes up with the same thing or maybe something better.
    thanks
     
  2. Silly and predictable answer. Invest it in Monk Offshore Concern. Bank details to follow.

    Serious note. Speak to several high street financial bankers/consultants (for free) and see what they offer you. You appear to be able to tie it up for more than a few years so investment might be on the cards.

    Worst case for that amount is pop it into an ISA.
     
  3. Try this for starters. http://www.arrse.co.uk/html/modules.php?name=Forums&file=viewtopic&t=1193&sid=7c6f72e773c6352368b0e297691dcbf1

    Let me know if you would like some latest info on interest rates for savings accounts. To be honest, a lot of the children's accounts have poor rates and adult accounts may be better. Having said that, there are some tax benefits to having the savings in your child's name. Let me know if you want details. ISAs returns are tax free - again, let me know if you need any basic info and/or the current best rates for cash ISAs.

    Premium Bonds are also a good bet - you can tuck away up to £30,000 and your capital will be completely safe. But if you are looking for growth as well, I can provide some basic info on various types of investments if that helps.
     
  4. Thanks for the tips.the problem with most high st banks and B/S all their advisors are tied. B&B are not tied and give independant advice.
    I've decided to put the money in a bond for him
    tied up for 2 years gives 5.00
    3 year=5.20
    5years=5.45
    not bad as he will get it paid gross

    He gets 3.20 in the account he's got at present
     
  5. Yes, independent is always best. Sounds like a good bet and, as you say, the interest will be gross. If it is not then fill in Inland Revenue form R85 to reclaim it.

    It is worth noting that children can only earn up to £100 without paying tax on interest on capital given to them by a parent (£200 for Mum and Dad combined). For example, a couple could give their child £5,000, which would earn the maximum £200 a year tax-free interest at an interest rate of 4%. One penny over £200 and the whole lot is taxed, so beware...

    As for money from everyone else, this is not taxed until your child's total income (including the £200 above) exceeds its personal allowance, which is £4,615 for this tax year. So if for some strange reason the taxman asks, you know what to say!