# Advice on Savings account for a child



## malika (14 Sep 2010)

I’m looking for advice if anyone knows the best way to start saving for childs future expenses, education etc? I’m currently with AIB. 
Are the any good saving plans with other banks, is there anything in particular I should look out for? I can’t afford to put aside a big sum, possibly around 40-50 euro each month at the moment. 
Thank you


----------



## Lightning (14 Sep 2010)

Do you want an account in your name which will be used for the child? If so, read the best buy threads. 

Do you want an account in the childs name? If so, the below may suit you ... 



> *Permanent TSB: Safari Saver *
> *3.00%* from €1 to €20,000
> *1.50%* on €20,000+
> Note 1: Instant access
> ...


----------



## Claire1956 (14 Sep 2010)

Hi Malika

am in the same boat. I have opted to purchase PrizeBonds on a direct debit basis each month over the next 10 years and have selected to reinvest any winnings in more bonds.

While I know that this fund doesn't keep up with the CPI/value of money, there is no tax on it either and hopefully some winnings to add to the kitty!!!!! 

Finally I wanted the funds to be in a format where I can't simply hit the bank counter and withdraw it easily, bit of time to sit down and seek to draw the funds....but it is easy if you really want them (i.e. doesn't support as spur of the moment shopping trip).

Just some thoughts............


----------



## malika (14 Sep 2010)

Thank you for your replies, will definately look in to both. 
Is there any advantage between having the account in child’s name vs my name? 
My idea is more of a savings account for me but aimed for a specific purpose only.


----------



## NHG (14 Sep 2010)

I'd like to start puting away my children's allowance towards college etc for my child, I have needed the money up to now but I feel that I could manage without it from now on, my child is 6 so somewhere longterm


----------



## Conshine (14 Sep 2010)

The website says: _Our Safari Saver makes it easy (and fun!) for children to save for themselves._

Whats fun about a paying in book?
Do any of the banks offer any gifts for the kids when they open an account?
Something like the Ulster Bank piggy bank (they are already with them) - It used to be all the rage when I was a youngster!


----------



## oldtimer (14 Sep 2010)

For kids, nothing beats saving certificates.


----------



## chlipps (14 Sep 2010)

i asked same query about 1 yr ago and decided to take oldtimers advice at time and go with the saving cert... which are great i think,... good return on them, money is locked in for 5.5 years so i dont have to be watching about looking for better interest rates etc... so annually i put away a sum but more regular is also possible..can even apply by post very quickly for 2nd and subsequent certs. Thanks Oldtimer


----------



## Wig (15 Sep 2010)

oldtimer said:


> For kids, nothing beats saving certificates.



Really? There is a 32% chance that Ireland will default inside the next 5 years according to credit default swaps. When/if Ireland defaults State Savings holders may loose their savings.


----------



## oldtimer (16 Sep 2010)

Wig said:


> Really? There is a 32% chance that Ireland will default inside the next 5 years according to credit default swaps. When/if Ireland defaults State Savings holders may loose their savings.


Appreciate these comments but, from a best interest point of view, it is hard to beat saving certificates over the long term. If safety is the issue best to avoid all products irish and open an account with Rabodirect.


----------



## Pauliwalnuts (16 Sep 2010)

Oldtimer/Chlipps,

Interested in the process of savings certs from a regular saver perspective. I have only ever invested lump sums in bonds & certs & in my experience there is quite a bit of paperwork involved. 

Is it possible for example to apply by post for additional certs each month & post cheques without haveing to actually go to the Post Office everytime to fill in all the paperwork, as well as complete the ID requirements?

Or would you be better off save in a regular savings account for a year say, & then use the lump sum at the end of that to purchase your certificates ?


----------



## oldtimer (17 Sep 2010)

The 'quite a bit of paperwork'' only happens with the original application. Once that is done certs may be bought by downloading the application form, fill out the form quoting the last cert number purchased, enclose cheque and post. It is just as easy to go to your local post-office - have the downloaded form filled out and signed and the clerk is the only one with paper work i.e. giving you a receipt. Saving certs can be used as a regular saving e.g. they can be bought anytime for amounts of €50 upwards. Many people save in an institution like a credit union for a year and then purchase saving certs with the lump sum. It is a personal choice.


----------



## chlipps (17 Sep 2010)

as per oldtimers post, the 2nd, 3rd etc.. applications are very quick by just quoting previous cert quoted.

However I dont think i would use them as a regular monthly saver as posting cheques every month is time consuming. I think you would be better off with the ebs reg saver and then at end of the year transfer the lump sum over to a saving cert. 

Note that when you post in your application form for 2nd and subsequent certs it will take approx 2 weeks for it to be processed and returned.


----------



## Catering141 (17 Sep 2010)

I don't know what interest is offered in saving certs so can't comment on them. But I have opened a savings account with An Post, it offers 25% tax free after 5 years. Children's one can't be touched until they are 7. So if you save the 150 CB a month for 16 years at least, it's quite a lot of money to have for your child when they turn 18.


----------



## sam h (10 Nov 2010)

I'm also looking in to setting up some new accounts for my kids as an account opened by the Grandparents pays no interest (used to pay a tiny bit, but not any more).

The amount isn't huge at the moment (significant for a child & enough to want to look after), but is likely to be higher in the next while due to a lump sum they are due.

- Security of funds is the most important
- Was hoping to avoid the Irish Institutes as I would feel responsible if they crashed & all their money was gone. 
- Not too sure about An Post either....Irish State Guarenteed doesn't fill me with confidence

I was all set on Nationwide UK, but they will not open an account for under 18's. I can open different accounts in my name & have them referenced. Interest would be 3.15% to 3.4% depending on which account. *Downside* is that they will be subject to DIRT & unable to reclaim (as I will be the principal account holder).

Called RaboDirect - can open kids account (linked to me as guarentor, but in their name). So they would be able to claim back DIRT, but they will have to have an individual digipass keyfob (electronic way to generate passwords)....I could see this being a nighmare with each having an customer number, pin number & a/c number. They pay 2% interest.

Has anyone any other ideas to suit ?


----------



## Howitzer (10 Nov 2010)

Has anyone set up a National Solidarity Bond for a child? 

I've read the terms and conditions but just wondering if anyone has got personal experiences.

(Xmas present for Godson. I'll be the the practical godparent how gives all the boring presents)


----------



## monica2 (10 Nov 2010)

hi there i think before you decide to invest in the solidarity bonds you should maybe look at the an post savings bonds which are a investment for 3 years and offer just as good rates of intrest which are free of dirt tax and offer the same government level of protection,because its only for three years it seems a much better option,also intrest rates between now and 10 yrs time will probably be much higher so why tie up your grandsons money for so long at a fixed rate?. its worth checking out.


----------



## Howitzer (10 Nov 2010)

Godson.

The child is a newborn so time isn't an issue. The interest rate isn't a world beater but that's not why I'd be buying the bond. 

It's the post-celtic tiger equivalent of prize bonds but the symbolism is the point.

So that's a no then?


----------

