Use your child - best child savings account
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Why are charges so high on jisa's and ctf s+s accounts? I got 8k saved for my son aged 8.
Return on ctf with nationwide was !!!!! so moved to 'family investments' s+s ctf but amc is 1.5% - cant see any difference bewteen this and any bog standard s+s isa.
Will move to a jisa in apr but options for active mgt seem pants and charges are all high. Putsme off investing further and think ill just put more ingo my own s+s isa and share with him when hes older. All be his when im dead anywaysLeft is never right but I always am.0 -
Sounds similar to the Halifax JISA account opening. I used the following phrase, which seemed to expedite it a bitJust a word of warning if you're considering opening a Halifax Kids Regular Saver - they make you work for your 6%. The process of opening an account took over an hour in a branch, and involved a 'financial healthcheck' for me and my wife, which was a thinly-veiled attempt at getting us to sign up for other Halifax products (current accounts, life insurance, home insurance, etc). The adviser also had to read us various bits of legal text verbatim off her screen, and from printouts, and at one point showed us a video summarising everything she'd already told us.
Don't expect it to be a simple case of filling in a form and providing a copy of your child's birth certificate!
"Please don't waste both your time and mine by trying to flog me anything else other than the JISA account that I want to open for my kids".illegitimi non carborundum0 -
http://www.thisismoney.co.uk/money/investing/article-1587994/Junior-Isa-Child-Trust-Fund-How-save-invest-children.htmlWill move to a jisa in apr
Might be worth a read/suggest areas to research.0 -
Halifax Kids Regular Saver - I've spoken to a couple of people at Halifax and both of them stated that actually this account doesn't pay 6% over the year. They said it was compounded interest and that the final rate was actually 3.1% and that 6% only applied to the first month.
I told them the website was very misleading as the info implies that it is fixed rate at 6% for the whole year.- Interest paid on maturity after 12 months
- Interest rates are fixed upon opening the account - check in branch for the current rate
- Fixed rate of interest – the rate we pay is fixed and will not change throughout the 12 month term
Thanks0 -
Halifax Kids Regular Saver - I've spoken to a couple of people at Halifax and both of them stated that actually this account doesn't pay 6% over the year. They said it was compounded interest and that the final rate was actually 3.1% and that 6% only applied to the first month.
I told them the website was very misleading as the info implies that it is fixed rate at 6% for the whole year.- Interest paid on maturity after 12 months
- Interest rates are fixed upon opening the account - check in branch for the current rate
- Fixed rate of interest – the rate we pay is fixed and will not change throughout the 12 month term
Thanks
Oh no, not again!
The AER of the account is 6%, not more and not less. The website is not misleading, it is absolutely correct. There is also no compounded interest as interest is only paid at maturity.
As this account is a regular saver, you can pay a max of £100 into it each month. Over the year, you will have paid in a max of £1,200, but the full £1,200 was only in the account for 1 month at most. In previous months, you have max £100, £200, £300, £400 etc etc in the account.
Interest gets paid based on the balance that is in the account at the end of each day. Thus you will not get 12 months worth of interest on the full £1,200. But you will get the pro-rata interest for the 30 or so max days you have max £1,200 in the account.
What you are confusing is the absolute return and the AER. The maximum absolute return from this account is £38.65. This happens to be roughly 3.1% (it's actually 3.22%) of £1,200 but 3.1 is an arbitrary number and not the AER. If the AER on this account was 3.1%, the return would be just £20.06.
You can work out the details in a spreadsheet, or you can use the MSE Reg Savings calculator for a quick check.0 -
Thanks for clarifying.
Basically is it on a par with other children's savings account that are at 3%?
I have £4,000 pounds I want to put into a long term account for my 2 year old niece but I'm struggling to find one that offers a good incentive. Can anyone suggest any good accounts that are not ISAs?0 -
If this is for the long term ( until the child is 18), why not invest the money into an investment trust held in bare trust and perhaps add money when you can?
Example http://www.bailliegifford.com/documentgateway.aspx?_id=3A39B056-DE6E-474E-870C-3DB1B9BB88F3&disclaimer=ok0 -
Halifax Kids Regular Saver - I've spoken to a couple of people at Halifax and both of them stated that actually this account doesn't pay 6% over the year. They said it was compounded interest and that the final rate was actually 3.1% and that 6% only applied to the first month.
I told them the website was very misleading as the info implies that it is fixed rate at 6% for the whole year.- Interest paid on maturity after 12 months
- Interest rates are fixed upon opening the account - check in branch for the current rate
- Fixed rate of interest – the rate we pay is fixed and will not change throughout the 12 month term
Thanks
What the Halifax says is mathematically and legally correct, and at the same time in my view, misleading. Meaning that the rate is indeed 6%, but because they force you to transfer the money out at the end of the year, you don't have the chance to earn the full 6% on all of your deposit.
You earn 6% on the first month's payment over the year. But you only earn 0.5% on the last month's payment, as it's only in the account for a month before they transfer it out. It's still 6% AER, but the key is that you haven't had the 'A' part of that (the annual) for anything but your first deposit.
So that means that they ARE paying 6% AER, but as very little of your cash is in there for that time, you don't earn 6%. It's a marketing swizz - grabs you with a great (accurate) AER headline, but you don't earn it.
If you wanted to game it, given that you can put in between £10 and £100 a month, if you put in £100 at the start of each of the first 3 months, then reduced it to £10 for the start of each of the remaining 9 months, you'd end up with 4.8% interest, which as far as I can see is the most you can get out of the account in a year.0 -
Seems a bit pointless registering on the forum solely to answer a question that was already adequately answered within 24 minutes of being posted over two months ago!0
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In the hope someone from MSE is reading this, the article needs to be updated. Nationwide now require the adult to have an existing account, and no mention is made of this here:
http://www.moneysavingexpert.com/savings/child-savings-tax-free#nationwide2
"The Nationwide Smart Limited Access account pays 3% AER, and allows you to operate the account online. However, its major drawback is that it only allows you to make one penalty-free withdrawal/year. Make any more and the rate drops, so if your child's likely to need frequent access, the Halifax account above may be a better pick."
However on the Nationwide page:
"As you know, to open one of our Smart Limited Access accounts you must hold an existing Nationwide account to apply online."
Well I didn't "know".....
So this account needs to be moved below into the Existing Customer Deals...0
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