if you’re a parent
here are four ways that you could be saving money for your child
I’ll cover two long term approaches and two more short term approaches
if we start with the short term approach
first place is a general savings account
so no bank account try and choose one that has high interest rates
is a good place for money that you need short term access to
if you didn’t want to open an entire bank account for your child
then what you could do is set up a space or pop within your own banking app
and allocate that to them
and then you can just push money in there as you need it
second short term solution would be Premium Bonds
this is essentially uh
an account where you can deposit money
and each month it’s entered into a prize draw for up to £1 million
everything within your account is tax free
so any prizes that you win a tax free as well
and you can access the money anytime
now let’s talk about some long term stations
the first one I wanna talk about is a Junior Iceland
which has an allowance of £9,000
at the moment there are a couple of types of junior ices
so you’ve got a cash cash ICER and a stocks and shares ices
stocks and shares ice will allow you to invest that money in the stock market
this account is longer term
uh the child will be able to get access when they’re 18
and they get full control of that account at that point
the second long term approach would be a genius sip
so junior pension
the limit for this is two thousand eight hundred and eighty per year
and the government will top that up to 3,603 tax relief
I mentioned this is a long term approach
the account owner the child
will not be able to get access to this money until they are of retirement age
whatever that is at the time