Oct 31 2008
In news which may be of relevance to parents saving for children, a number of warnings have been issued this month to consumers about deposits.
Among the cautions issued was one by Kevin Whitmarsh, financial services partner at Old Mill, who pointed out that although the government has increased the compensation limit for savers who lose their money when a bank collapses, restrictions still apply.
Under the revised conditions, savers are now covered to an upper limit of £50,000.
"[However,] the guarantee is per financial institution, not per account and banks that share the same Financial Services Authority registration number count as one financial institution," Mr Whitmarsh advised.
http://www.savingforchildren.co.uk/Savers-issued-warning-over-compensation-scheme-181_1_18848717.html
Meanwhile, research conducted by Abbey Savings recently revealed that 35 per cent of regular savers, including those putting money away for their children, need to increase the amount of their monthly deposits in order to keep up with inflation.
It said that non-taxpayers would need to raise their saving deposits by £53.40, while basic rate taxpayers would need to add £66.00 and higher rate taxpayers £78.60.
http://www.savingforchildren.co.uk/Savers-must-take-inflation-into-account--181_1_18838176.html
Despite these issues, it was found that saving for children is still viewed as important by many adults in the UK.
Indeed, figures produced by Family Investments showed that 81 per cent of parents surveyed were prepared to give up clothes shopping in order to put money away for their offspring.
"In our experience, saving for a child's future is a parental obligation, so when things are getting tough this is the last area that parents are willing to cut back on," commented Kate Baker, head of savings and investments at Family Investments.
http://www.savingforchildren.co.uk/Parents-willing-to-sacrifice-luxuries-to-save-for-children--181_1_18820967.html
It was also found this month that parents are not the only ones stashing money away for youngsters.
According to a YouGov poll conducted on behalf of investment managers Baillie Gifford, 33 per cent of grandparents were putting money away for children in their families.
http://www.savingforchildren.co.uk/-A-third-of-grandparents-saving-for-children--181_1_18842515.html
Indeed, such people may be well-advised to do so, with Virgin Money recently suggesting that investing a child savings plan can make a significant difference to their financial wellbeing later in life.
The company cited the example of singer-turned-actress Billie Piper, who gave birth to a baby boy earlier this year.
According to calculations completed by Virgin Money, total savings of more that £1 million could be amassed for the infant by the time he reaches the age of 65 if £100 is put away each month into a pension.
Grant Bather, a spokesman at Virgin Money, said: "With any savings plan the more you put in the more your child will get back at the end."
http://www.savingforchildren.co.uk/Saving-for-children-can-make-all-the-difference--181_1_18840403.html
