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  • Emma Wallington

It's not just about knowing HOW to save money it's knowing WHERE

With interest rates so low at the moment, it's not just about HOW to save for your child but WHERE to save. The type of account you pick and how the money is invested can have a huge difference on the size of the savings pot when your child reaches adulthood.


Now is the time to be strategic and we recommend considering the following options: Shop around


Martin Lewis offers great guidance on the different types of savings accounts available and the best interest rates, if you're investing in cash, this is the place to go. However for possible larger returns.... Invest in a stocks and shares Junior ISA (JISA)


Stocks and shares JISAs allow you to invest up to £9,000 per year in the stock market i.e. in companies. Within a stocks and shares JISA, you can use the money to buy a small part of a company such as Google or Apple and your money will grow as they do (however please bear in mind that companies can also fall in value). You have a better chance of a higher return than putting the money in a cash savings account, especially over 3 years or more (and for children we are talking up to 18 years!) The JISA type of account is useful as it means you don't pay any tax on the money saved. Use your JISA to invest in a good Global Index fund


A 'fund' allows you to invest in multiple companies at the same time. This is great because it's really difficult to know which companies will consistently do well. Investing in lots of companies in one go means that if one company has a rough time, the growth of the other companies will make up for it. ️You could think of it like a game of football - betting that one particular player will score a goal during a match is more risky that betting that a football team as a whole will score. Also, if one or two players perform badly, the rest of the team playing well can still mean they can win the game (I don't know much about football so I hope this makes sense!)

A Global Index fund tracks a selection of global companies meaning you don't even need to worry what particular country or market will do well.

How are you dodging ultra low interest rates? Comment below!

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