Investment company children’s saving schemes

The countdown to Christmas is underway, but whilst children’s savings schemes are unlikely to become this season’s kids must haves, they will certainly be remembered long after all the toys have been put away.

Association of Investment Company (AIC) statistics show that a £100 investment in the average investment company has grown to £605 over the last 18 years, whilst a £50 per month investment has grown to £29,330 – enough to put a child through university and perhaps get a foothold on the property ladder too.

Jemma Jackson, PR Manager, AIC, said: “We all want children to have a great Christmas with lots of toys. But with so many gifts unwrapped and then discarded, it may be worth also considering a gift that will be appreciated long into the future. Whilst all investment companies can be used to save for a child, investment company children’s savings schemes are an easy way to invest on a child’s behalf. They are also a thoughtful alternative to a cash present and have the potential to grow into a significant sum over the long-term.

“With no penalties for stopping and starting, and minimum regular savings starting at £25 per month, children’s investment company savings schemes are worth a closer look. In terms of the tax implications of gifting shares, parents are only taxed on the income from the shares if the income is over £100 or more a year, whilst any income generated by gifts made by anyone other than the parent is treated as the child’s own.”