What are the best investment accounts for children?
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Written on: 10.11.2009 [15:31]
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Brady
Brady
Topic creator
Posts: 1
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I would like to invest some money for my niece, so that she will have a small financial cushion when she's a bit older. She's just two now, and I'd like the investment to run until she's sixteen or eighteen. Are there best investment accounts for children? |
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Written on: 16.11.2009 [20:40]
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Best
Best
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I gather that you're considering investing a particular sum, rather than saving regularly on her behalf? You have at least fourteen years for the investment to mature, so I would recommend investing at least once in a notice account with high interest or a bond. Notice accounts offer high interest for children's accounts, often 5%, whilst bond accounts are available which pay regular interest until the account holder is eighteen. You may wish to consider the best all round investment option for the money, rather than focus on packaging it in a 'children's' account: sometimes you'll get a better deal. For example, if you invest £2,000 in a basic savings account you can get 6% - the highest children's equivalent offers around 5%. |
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