Let’s talk about junior savings

 

Let’s talk about saving for your children

We understand the importance of saving and believe that the earlier an individual starts to save, the better. Encouraging children to save can help them to understand money and create good habits early on. If you were to save £20 a month for 18 years, you would end up with £4,320 in savings for them, plus any interest you have earnt on top of this. They could then use this money towards driving lessons, a vehicle purchase, university or even a deposit for a house.

There are a variety of ways to save for children. Here are some popular ways to save:

Piggy bank
An easy way to save at home with spare change to hopefully teach your children good habits for the future. This can help you to teach your child the value of money, as you can give them pocket money to save in their piggy bank. By doing this you can let them choose to save their money for something slightly more expensive or to spend it there and then.

Junior ISA
You can usually open a Junior ISA with your local bank or building society. They are a good option as your child won’t have to pay any tax on the interest they earn. The account is opened by a parent or guardian, but the money belongs to your child and they cannot withdraw it until their 18th birthday.

Premium bonds
You can buy premium bonds on behalf of your child as you need to be at least 16 years old to purchase them. You will need to invest at least £25 to start with and you can keep purchasing them until you reach the maximum holding level, which is currently £50,000. With premium bonds you don’t receive interest, instead you are entered into a monthly prize draw to earn a cash prize.

Child pensions
You can set up a pension for your child and it will automatically transfer to them when they turn 18, at which time they can start to contribute to it themselves. Your child will not be able to access the money until they reach retirement age. A pension is still an investment which means returns can fluctuate as they are affected by the stock market.

Saving with No1 CopperPot
You can choose to save with us through our Junior Account. As soon as the account is open, we start off your child’s savings with a £5 gift. You can then put in saving deposits as and when you wish, or you can set up monthly contributions. Most members deposit into the account on birthdays, Christmas and special occasions. The account could also earn an annual dividend, paid at the same rate as the Member Account. Please note the maximum you can hold in a Junior Account is £10,000. You can open a Junior Account if you are the parent, grandparent, or guardian of the child. You will then be the controlling adult on the account until the child turns 18. Upon their 18th birthday their account will be changed to a Family Member Account and control of the account will be handed over to them. You can open a Junior Account with us by clicking here. 

 

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