Best savings account(s) for my nearly 16 year old?
sarahb74
Posts: 3 Newbie
Hi. I currently have 2 Halifax accounts for each of my children, the regular saver and the young saver. My eldest turns 16 next month and I understand that he can no longer have these accounts with Halifax. Their alternatives for "adults" aren't that great and I'm struggling to work out what to do. I plan on continuing to give him £100 per month into a regular saver (if that pays the best interest) and the balance of his other savings (around £5,000) needs a home. The Barclays regular saver looks quite good at 3.5% with a max age of 18, or are there better alternatives? What about the rest of his savings? He may need access to some of the balance in a year or so, I'm thinking driving lessons/car etc. Thanks for any help!
Sarah
Sarah
0
Comments
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Does he have a JISA? Halifax offers 3% - Coventry offers 3.25%.
Have you looked at Santander mini 123?0 -
You can continue with the regular for the 16th year its when they turn 17 the account will need to change,
If the regular saver matures before they turn 16 you can open a new one, and continue for one more year but then you will need to look at accounts for them at the age of 17.I’m a Forum Ambassador and I support the Forum Team on the Banking & Borrowing, and Reduce Debt & Boost Income boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySaving Expert.Save 12k in 2023 #58 Total (£4500.00) £2500.00/£5000 = 50.00%Sealed Pot Challenge ~17 #24 Total (£55.00) £0.00/£500 = 0.00%Xmas 2023 £1 a Day #13 Total (£85.00) £344.00/£365 = 94.24%Virtual Sealed Pot #1 Total (£500) £550.00/£500 = 110.00%£2 Savers Club 2023 #17 Total (£25.00) £45/£300 = 15.00%The 365 1p Challenge 2023 #7 Total £656.19/£667.95 = 98.23%Total £4095.19/£7332.95 = 55.84%0 -
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Thanks xylophone, I will look into JISAs, I hadn't really thought of that as ISA rates seem so poor these days, but will definitely try those. He has a mini 123 but he uses that for his spending so I don't want to put a large balance in there in case it is too tempting!
Thanks Westie - Halifax told me that 15 is the max age for these accounts and that on his 16th birthday they would be converted to adult accounts with poor interest, I will go back in and check with them though.
Hi flobberchops - yes it is on the Barclays website, and having checked it is 3.5% not 2.5% so I think I will go for that on the regular saver and look for another home for the balance, possibly a JISA.0 -
I wouldn't *count* on bank accounts converting. I *suspect* the whole waltz of evidence of ID etc has to be gone through Yet Again At 18, but a driving licence will certainly help there.
I do hope I'm wrong, but if you plan for the worst & thus ensure he has both a driving licence & a current passport, all should be simpler.0 -
Hi flobberchops - yes it is on the Barclays website, and having checked it is 3.5% not 2.5% so I think I will go for that on the regular saver and look for another home for the balance, possibly a JISA.
Aha. I'm afraid you got two of the details wrong - the second is that it has to be opened by somebody who is 18+ on behalf of somebody who is under 16. Better hurry if your child is almost 16.
Halifax have a very similar product which is 4% - so between the two of those you could put away £200 a month averaging 3.75%, which in the current climate is not too shabby.
A JISA is looking like the best bet going forward though as you'd get at best one year from the above regular savers.: )0 -
Thanks again - we already have the Halifax product, which he cannot continue with once he reaches 16 which is why I am looking for something new. I knew you had to be over 18 to open it, I am over 18! The person the account is for has a max age of 18 which I know.
The issue with the JISAs is that you cant withdraw any money until you are 18 so if he wants a car at 17 he cant access the money - there seems to be a real hole for 16-17 year olds in terms of getting a good return.0 -
The issue with the JISAs is that you cant withdraw any money until you are 18 so if he wants a car at 17 he cant access the money
You might agree to buy the car against a repayment when he can access the ISA?0 -
The person the account is for has a max age of 18 which I know.
16.The issue with the JISAs is that you cant withdraw any money until you are 18 so if he wants a car at 17 he cant access the money - there seems to be a real hole for 16-17 year olds in terms of getting a good return.
The good news is that at 16-17 he can hold both a junior and adult ISA. In fact he could open a Help to Buy ISA on his 16th birthday and use it as a high(ish) interest regular savings account with instant access.: )0
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