Help your little one save up for a house
PARENTS looking for different Christmas presents for their children should not rule out a financial gift that keeps on giving.
Premium Bonds from National Savings & Investments can be purchased for your children – or grandchildren – for a minimum of £100. Taxfree prizes ranging from £25 up to £1million can be won in monthly draws.
Alternatively, a children’s saving account can be opened and youngsters can top them up with pocket money and earnings from chores. Interest rates are higher than usual – with the best paying 3 per cent.
For longer term saving, a Junior Isa lets you save up to £4,260 a year tax-free on behalf of a child, either in cash or shares.
The money is tied up until the child turns 18 making it an ideal vehicle to save for a house deposit.
Wealth manager Brewin Dolphin calculates that putting away £108 a month could build a fund worth £33,230 – the average deposit currently paid by first-time buyers.