Children's Regular Saver - Halifax

Lopsie · 4 June 2014 at 3:34PM

Hi, I opened a children's regular savings account @6% with Halifax for my new born son last year, the account is 12 months old at the end of the month, and changes into a children's savings account @3%.

Just wondering am I able to open a new regular savings account @6% for him next month with Halifax when the his old one ends, or is it a one off?

If I can open another account, am I able to drip feed from his 3% account into the regular saver at 6% to make his money work harder?! The reason I'm asking this is that he has over £1500 at the moment (£1200 in the regular saver @6% and £300 in an Halifax ISA @6%), and I have put a £100 in each month since he was born, but come November, baby no.2 is due and I will only be able to put £20 max in each month, but I would like to be able to make full use of the 6%... any advice would be great!

If I can't open another regular savings account @6% with Halifax for him, what are my best options for saving with £20 a month? (The ISA will also change to 3% next month).

Thanks in advance!

westy22 · 4 June 2014 at 3:44PM

I'm fairly sure that you can open another Regular Saver for the next 12 months but it may have to be done in branch or maybe they will write to you shortly and offer you the option of starting a new one.

I think it is unlikely that you can recycle money from the Halifax Savings Account into the Regular Saver - I think that will require new savings money.

Lopsie · 4 June 2014 at 3:47PM

Great, thanks for your reply

xylophone · 4 June 2014 at 3:54PM

Had you thought of opening a cash ISA of your own so as to be able to access the Halifax JISA for each child?

http://www.halifax.co.uk/isas/cash-isas/junior-cash-isa/?srnum=1

https://www.gov.uk/junior-individual-savings-accounts/overview

Be aware of the "£100 rule" if putting money into your child's account outside tax privileged schemes like JISA.

http://www.halifax.co.uk/savings/accounts/branch-accounts/?srnum=5

"The child may be eligible to receive their interest gross as a UK non tax-payer. The account(s) can be registered in branch where you will be asked to complete an HMRC R85 form. You can download the R85 form at https://www.hmrc.gov.uk. To prevent a parent or civil partner from using their children’s account to earn interest on their money, HMRC limits the amount of gross income/interest that the parent’s’ or civil partner’s gifts can earn to £100 a year for each parent or civil partner. This limit doesn’t apply if the gift comes from anyone but the parent or civil partner. Please note that it is the parent’s or civil partner’s responsibility to declare this to HMRC if required to do so. For more details, please visit HM Revenue and Customs at www.hmrc.gov.uk."

Lopsie · 4 June 2014 at 4:25PM

Great, thank you. Will look into it. Thanks for the links. For some reason I wasn't keen on the JISA option when I went to the branch and opened the accounts, but I can't remember why now! I opened an ISA for myself last year, which enabled my son to get the 6% rate, but I remember preferring the regular saver account for him. Will get researching, thanks!

AlwaysLearnin · 4 June 2014 at 4:31PM

Lopsie wrote: »

Just wondering am I able to open a new regular savings account @6% for him next month with Halifax when the his old one ends, or is it a one off?

Yes you can. They should have sent/soon will send you a letter with a form to renew (from recollection was about 2 months before expiry). You can take it in to branch for them to action. I guess you could ask branch to do it without the form if necessary.

You'll need to transfer last years reg saver amount into another acct.

xylophone · 4 June 2014 at 4:41PM

You'll need to transfer last years reg saver amount into another acct.

The JISA might do for this?

I can't remember why now!

Because the funds cannot be accessed until the child is 18?

Because the child would have total control of what might by then be a substantial sum?

But of course any money saved in other accounts that you held in bare trust for your child would also fall under his control when he became 18 (or possibly earlier with certain accounts)- it's just that the £100 rule could apply to interest earned on such accounts.

Eco_Miser · 4 June 2014 at 4:57PM

westy22 wrote: »

I think it is unlikely that you can recycle money from the Halifax Savings Account into the Regular Saver - I think that will require new savings money.

If the savings account is instant access with unlimited withdrawals, the money can be recycled - either by direct transfer or if that's not allowed, by withdrawing a bit each month and paying into the regular saver.

Lopsie · 10 June 2014 at 4:44PM

Thanks everyone for your very helpful replies! I have booked an appointment at the Halifax for tomorrow to open a new reg savers account.

Children's Regular Saver - Halifax

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