http://www.telegraph.co.uk/finance/pers ... vings.html


I have said this for ages.

I know everyone has money thats now depreciating at a rate of -3.5 to -0.5% a year.

No Sh1t Sherlock

All it does is penalise those that saved and reward those that borrowed excessively. Without decent rates of interest the savings instinct will not be restarted. Those who have saved will either get wiped out as they have their savings wiped out or they will be forced to take greater risks with their money potentially impoverishing them as well.

I've lost 00 per month off my interest earned

I was about to start a savings account for the baby. Thinking I might as well stick it under the matress now.

I would opt for an ISA, they pay better rates are tax free and as the baby will not need the money right away it will allow it to grow. Personally I would avoid the shares option for now. I expect another crash as teh whole market is overvalued.

Start a Pension for it

http://www.telegraph.co.uk/finance/personalfinance/pensions/7222893/An-uncle-and-his-pensions.html

What's the rate on the Child Trust Fund?

I'm not having a CTF (or actively contributing to it - i'll use the voucher they send to open one) as I dont like the idea of the kid being in change of the money when she turns 18. Dont get me wrong I'm hoping to raise a good 'un and they'll be more sensible than to waste it but you never know. I was a good kid but at 18 if I was handed £1000's I wouldnt have been thinking about futures and house deposits and stuff, I'd be thinking how fast a car I could buy with the cash!

I know what you mean, the same thought crossed my mind with the nephew

I have to say I disagree

MY Grandmother opened a Unit Trust account for me when I was very little and put a few quid in it. As I got a bit older I used to get the statements and my parents would talk me through them. At 18 I had control but kept it in there until I needed a deposit for my 1st house

Its a good way of teaching some financial management to your children

Years ago I had a friend whose parents gave her and her sister a monthly allowance and that covered everything apart from home meals. They had to buy their own school uniforms and school meals. Her 13 year old sister had saved £3500 in three years since the allowance started. This was many years ago when that was more than some jobs starting salaries.

I'm, coming up to 18 and I wouldn't be thinking of that.
I have1.2k in my account already so I'd probably get some clothes out of what I saved.
And My mum has saved £3000 (that had share options) in an ISA so I'll be keeping that in lockdown for my gap year while I add to it until I go uni.

It depends heavily on a persons financial maturity.