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7.25% interest for people receiving child benefit!
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rebecca2610
Posts: 2 Newbie
hi just found this one (you need to be receiving child benefit for this): coventrybuildingsociety.co.uk if you go to there homepage you'll see the ad.
basically all you do is change your child benefit bank account details to theirs and they pay 7.25% interest on your child benefit payments.
sounds great what does everyone else think? has anyone tried this?
basically all you do is change your child benefit bank account details to theirs and they pay 7.25% interest on your child benefit payments.
sounds great what does everyone else think? has anyone tried this?
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Mrs Wild Rover seemed somewhat sceptical - I have had a quick look at their website - if there is a catch there I confess I didn't see it. Presumably it would be particularly useful for non taxpayers, or taxpayers who have used up their ISA allowance and other "savings fountain" products?
Come to think of it, will Martin have to produce another "savings fountain" specifically for mothers!!!???
WR0 -
Martin recommends this on the main site here:
http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1108401263,93536,
It's in a grey box on its own some way down the screen.
Guess it must be fine if he says it is!0 -
The trouble is you can only have the 7.25% on the amount of your child benefit, which for one child is IIRC about £800 a year (isn't it £16 a fortnight? Ours goes straight to the missus so I wouldn't know).rebecca2610 wrote:hi just found this one (you need to be receiving child benefit for this): coventrybuildingsociety.co.uk if you go to there homepage you'll see the ad.
basically all you do is change your child benefit bank account details to theirs and they pay 7.25% interest on your child benefit payments.
sounds great what does everyone else think? has anyone tried this?
While 7.25% is a nice rate, the difference between this and the best generally-available saver rate is only 0.25%. You can get 7% from the Halifax and unlike the Coventry product you aren't limited to depositing only your child benefit.
This means that on an average balance of £400 a year, the Coventry deal is worth a massive £1 a year more.
Anyone so short of cash that they need the extra £1 a year probably can't afford to save in the first place.0 -
Yes, but with the Halifax you have to deposit at least £25 every month and you are not allowed to withdraw anything for the 12 month duration, unlike Coventry which has no restrictions. If you break any of the conditions the interest rate reverts back to the Websaver rate which is around 4%.
Also, Coventry are paying 5.25% on all other payments into the account which is a pretty good rate considering there are no restrictions and you get a cashcard too
"An Ye Harm None, Do What Ye Will"
~
It is that what you do, good or bad,
will come back to you three times as strong!
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rebecca2610 wrote:sounds great what does everyone else think? has anyone tried this?
I think it's a great little account to have and opened one myself a couple of weeks ago. Everything was done by post and completed within a week, no messing around
I only have CB coming in for one child now, so while it's not a huge amount, I can just leave it building up in there and basically forget about it. I can also add to it any surplus cash I want to save and get a decent 5.25% interest on that too "An Ye Harm None, Do What Ye Will"
~
It is that what you do, good or bad,
will come back to you three times as strong!
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I've just got my form and am a bit confused, as I'm not entirely sure if I can actually open the account in DD's name, if not then surely I would be better off to get her a good account that I *can* put into her name, or what am I missing?DFW stats:
Currently under review
Proud to be dealing with my debts0 -
Anwen wrote:I've just got my form and am a bit confused, as I'm not entirely sure if I can actually open the account in DD's name, if not then surely I would be better off to get her a good account that I *can* put into her name, or what am I missing?
AIUI you can't open it in your kid's name. You open it in the name of the parent who gets the child benefit, which you then arrange to have paid directly into the account, regardless of how many children there are.
It seems a lot of hassle to me; a sprat to catch a mackerel. You only get 7.25% on the basic child benefit amount, which is worth all of £1 a year more than the Halifax offers. Beyond the basic child benefit amount, you only get 5.25%, which is worse. OK, you can make withdrawals, but doing that totally defeats the point of a saver account anyway.
The net rate offered is worse than the best ISA, worse than many other regular saver accounts, and about the same as most child saver accounts.0 -
westernpromise wrote:You only get 7.25% on the basic child benefit amount, which is worth all of £1 a year more than the Halifax offers. Beyond the basic child benefit amount, you only get 5.25%, which is worse.
Can you recommend any other savings accounts that I might get a better return on my money then please? It would have to be one where I wasn't penalised if I needed to make a withdrawal though as you never know when an emergency might crop up. I'm probably looking to save in the region of £100 a month but don't want to be tied into having to pay that amount in every month. Some month's might be more, some less.
Thanks! "An Ye Harm None, Do What Ye Will"
~
It is that what you do, good or bad,
will come back to you three times as strong!
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Chill, you asked what people think and westernpromise has given you what he/she thinks. No one has said it is a bad account for YOU so don't get so defensive!0
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lipidicman wrote:Chill, you asked what people think and westernpromise has given you what he/she thinks. No one has said it is a bad account for YOU so don't get so defensive!
??????????
I'm assuming that comment was directed at me but can't understand why you responded in that manner
I wasn't the OP asking about the account in the first place but having recently opened the very same account I'm just concerned that it might not be my best option given what westernpromise said, so I'm just trying to find out if there's a better option for me."An Ye Harm None, Do What Ye Will"
~
It is that what you do, good or bad,
will come back to you three times as strong!
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