Visit our dedicated Child Savings literature page.
If you're more concerned about keeping control over the account than the tax advantages then a First Steps IDA might be for you. If not and you're a tax payer, it makes sense to use your Junior ISA allowance before saving for your child in an Investment Dealing Account.
Tax rules may change in the future and taxation will depend on your personal circumstances.
With a Junior ISA and Child SIPP your child is the owner of investments you make for them. From 18 they get control (even if that doesn’t stretch to taking money out in the case of a Child SIPP).
If you’d rather keep control until you feel your child is ready, think about a First Steps Account.
IMPORTANT! Please read our product guide before deciding whether a First Steps Account is right for you and your child.
Anyone can open a First Steps Account. You don’t have to be the child’s parent or legal guardian. Or any relation at all. And as many Accounts can be opened for one child as you like.
If you like you can set up a trust to hold a First Steps Account for your child. There are different types of trust, but broadly speaking you can use a trust to make it clear from a legal point of view that the investments are being held for the benefit of the child.
The terms of the trust also set the ground rules for how and when they can be given control over those investments.
We are very happy for a trust to hold a First Steps Account but we can’t arrange one for you. You will have to do this separately with the help of a lawyer or financial adviser.
Any UK resident adult aged 18 or over can open a First Steps Account to invest for a child.
£50 (either as a one off or regular payment).
There’s no maximum.
Anyone can. You don’t have to be the parent, guardian or any relation of a child to open a First Steps Account.
The adult who opens the Account. You can think of our First Steps Account as a way to hold and track the investments you are making for a child separately from those you are making for yourself.
There are no tax advantages. And because the investments belong to the Account holder, if they die the First Steps Account will form part of their estate and the child won’t have any direct claim on them.
£3.33 a month to hold a First Steps Account with us. You will also pay charges on the investments you hold and for any transactions you ask us to carry out. Read our Charges Guide for the details.
There are no limits to how many First Steps Accounts can be open for the same child. And up to four adults can be joint holders on one Account.
When the child reaches 18 you don’t have to transfer the Account into their name. You are completely in control. But we change it into a regular Investment Dealing Account at that point, which means the Account fees will change to £7.50 a month.
Alliance Trust Savings Limited is a subsidiary of Alliance Trust PLC and is registered in Scotland No. SC 98767, registered office, PO Box 164, 8 West Marketgait, Dundee DD1 9YP; is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, firm reference number 116115. Alliance Trust Savings gives no financial or investment advice.