Three Ways to Save for Your Child’s Future

At birth, a child expense immediately props up. These expenses in the meantime can consume a huge portion of the household’s income. A careful examination and evaluation thus need to be made a bout best ways to save for a child future. Below are carefully evaluated best ways to do this. 

1. Children Bonds

· These bonds offered and regulated by the national saving and investment also referred to as NS and I.
· This is a tax free long term investment opportunity. This means that interest earned is not subjected to UK income tax and capital gain tax
· One can start by investing as low as 25pounds but this is not mandatory as any higher amount as can as well be an initial investment. 
· The maximum amount to be invested is 3000pounds.
· The interest rate which determines the interest to be earned is fixed for some specific term.
· It is also possible for one to know the total return at maturity.
· The account is suitable for young ones below the age of 16 years.
· It does not give the child control over the account.
· Interests are added annually for five years.

2. Children Savings Account

· This type of account is offered by almost all banks and building societies in the UK.
· These accounts may have minimum and maximum age requirements.
· The accounts are available for both short and long term investment goals.
· Are also accessible only on maturity but can also be accessed on emergency.
· There are no standard interest rates as these widely vary from among financial institutions.
· Some banks give gifts to children on some special occasions like birthdays and Christmas day.
· It is also a tax free investment for young ones as tax is not levied on the interest earned on the account as long as the interest is below 100pounds.
· Savings earned on this account can be compounded which brings another added advantage

3. Premium bonds

· This is also a product of National Saving and Investment.
· It is worth to note that gains on this investment is not guaranteed as on maturity the amount realized may be lower than the amount invested.
· No interest is paid though it comes along with numerous small gifts.
· Though the investment earn no interest, the fund still earn interest which face a monthly draw the prizes can be as huge as, one million pound jackpot monthly.
· Also note that all prizes won are not subjected to any tax that is they are tax free.
· The amount invested can be withdrawn any time as the investor does not need to place any notification for to withdraw. This will in turn attract no penalty whatsoever.
· The least investment amount is 100pounds or 50pounds if one buys via bank standing order or bank transfers.
· The maximum amount that can be held is up 40000pounds equivalent in bonds.
· The bonds need to be held for at least a month to qualify for a draw.
· Bonds that are in draw have equal chance of winning monthly prizes regardless of the length of time the investor has held them. 
· The buying transaction has been simplified as bonds can now be bought online.

The outlined above are some of the ways to save for a child’s future and can be of help to many and
csa contact help can be sought for assistance.
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