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What is the best way to save money for my child?

As a parent, you want to provide your child with the best possible start in life. One way to do this is to save money for their future. Whether you're saving for your child's education, a down payment on a home, or simply to give them a financial cushion, there are many options available. Here are some of the best ways to save money for your child.

 What is the best way to save money for my child?

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Junior ISA

A Junior ISA is a tax-efficient way to save money for your child's future. The account can be opened by a parent or legal guardian, and anyone can contribute up to £9,000 per year (as of 2021-2022). The money in a Junior ISA is locked in until the child turns 18, at which point they can access the funds. There are two types of Junior ISA: cash and stocks and shares. Cash Junior ISAs are similar to savings accounts, while stocks and shares Junior ISAs are invested in the stock market.

Child Trust Fund

A Child Trust Fund (CTF) is a savings account for children born between 1 September 2002 and 2 January 2011. The government provided a voucher of £250 to £500 to every eligible child to start a CTF account, which could then be added to by parents, family members or friends. As of 2021, CTFs have been replaced with Junior ISAs, but those with CTF accounts can still manage their funds until their child reaches 18.

High-Interest Savings Accounts

Many banks and building societies offer high-interest savings accounts for children. These accounts often have better interest rates than adult savings accounts, and may offer other incentives such as regular saver bonuses. Some accounts may have age restrictions, so be sure to check the terms and conditions.

Regular Savings Accounts

Regular savings accounts allow you to save a fixed amount of money each month. These accounts can be a great way to save for your child's future, as they encourage regular savings habits. Some regular savings accounts offer higher interest rates than standard savings accounts, but may have restrictions on withdrawals.

Trust Funds

Trust funds are a legal arrangement in which money is held by a trustee for the benefit of the child. The trustee can be a family member or a professional trustee. Trust funds can be a good option if you have a large sum of money to invest, as they offer more flexibility than Junior ISAs or savings accounts. However, trust funds can be expensive to set up and manage.

National Savings and Investments (NS&I)

NS&I is a government-backed savings provider that offers a range of savings products, including Junior ISAs and Premium Bonds. Premium Bonds are a type of lottery where you purchase bonds and the returns are determined by a monthly prize draw. While there is no guaranteed return, they can be a fun and exciting way to save for your child's future.

Stocks and Shares

Investing in stocks and shares can be a good way to save for your child's future, as they have the potential for higher returns than savings accounts or bonds. However, investing in the stock market does carry some risk, so it's important to do your research and seek professional advice before making any investment decisions.


Although it may seem early, starting a pension for your child can be a smart way to save for their future. The earlier you start, the more time your money has to grow. Additionally, contributing to a pension can be tax-efficient, as contributions are made before tax is deducted. However, it's important to remember that pensions are long-term investments and may not be accessible until your child reaches retirement age.

In conclusion, there are many ways to save money for your child's future.

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