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  • FIRST POST
    • MSE Martin
    • By MSE Martin 11th Jul 04, 3:30 PM
    • 8,107Posts
    • 42,239Thanks
    MSE Martin
    Use your child - best child savings account
    • #1
    • 11th Jul 04, 3:30 PM
    Use your child - best child savings account 11th Jul 04 at 3:30 PM
    To read the article this discussion relates to click here

    To ask a question or discuss click reply
Page 37
    • robatwork
    • By robatwork 11th Jul 15, 5:33 PM
    • 3,662 Posts
    • 3,991 Thanks
    robatwork
    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...
    • Froggitt
    • By Froggitt 11th Jul 15, 7:13 PM
    • 5,758 Posts
    • 3,050 Thanks
    Froggitt
    "As you know, to open one of our Smart Limited Access accounts you must hold an existing Nationwide account to apply online."
    Originally posted by robatwork
    What about applying in branch?
    illegitimi non carborundum
    • Darceydo
    • By Darceydo 23rd Oct 15, 11:47 AM
    • 1 Posts
    • 0 Thanks
    Darceydo
    Inheritance of 20000, what is the best options
    My 3.5 year old daughter is due to receive a lump sum of 20,000 from her living Grandmother. What are the best options to save this money long term? It will likely be used for school/ university or first home.
    • xylophone
    • By xylophone 23rd Oct 15, 2:04 PM
    • 21,291 Posts
    • 12,223 Thanks
    xylophone
    Is the money a direct gift to your daughter, for her use only and to be used as she wishes once she is of age?

    If so, then using the money for school fees does not seem appropriate?

    If she has a CTF, it would be possible to make the full contribution to it now (assuming this has not already been done) then transfer it to a JISA and make the full contribution for this tax year.

    The balance could be held in bare trust in a child account and gradually transferred to the JISA over the next few years.

    You will need to decide whether to remain in cash or to use some stock market investments as well.

    http://www.moneysavingexpert.com/savings/child-savings-tax-free

    https://www.gov.uk/child-trust-funds/overview
    • gavcooper
    • By gavcooper 6th Apr 16, 7:46 PM
    • 113 Posts
    • 13 Thanks
    gavcooper
    Are interest payments included in the 100 rule?
    To confirm the 100 rule applies to income earned each year for one child from one parent. So two parents can deposit for one child, making a total of 200 interest.

    What happens after year one when interest is added to the initial deposits from the parents, which then increases the total balance and the interest payments go over the 100 limit in year two?
    • Froggitt
    • By Froggitt 6th Apr 16, 10:33 PM
    • 5,758 Posts
    • 3,050 Thanks
    Froggitt
    1) Yes
    2) It becomes taxable as parents income. Also watch out for interest rate to go up as this will tip you over 100. Either withdraw the interest for your child, rather than let it compound, or put in a smaller amount of capital so that it only produces say 90 of interest in year one, leaving room for growth.
    illegitimi non carborundum
    • gavcooper
    • By gavcooper 7th Apr 16, 7:31 AM
    • 113 Posts
    • 13 Thanks
    gavcooper
    Froggitt, thank you for confirming my thoughts.
    • sallyjay
    • By sallyjay 4th Aug 16, 10:21 AM
    • 1 Posts
    • 0 Thanks
    sallyjay
    Sally
    I'm looking for the best accounts for my children's savings. All three have 11 500
    My 17 year old has the help to buy ISA but I would like to put his money into an account paying a good rate of interest which then feeds into the ISA as you can only put a certain amount per month into the ISA.

    Also which would be the best account for my other two who are 14 and 9? They will not need to make any withdrawals.

    Thank you.
    • eskbanker
    • By eskbanker 4th Aug 16, 10:36 AM
    • 4,453 Posts
    • 4,175 Thanks
    eskbanker
    See http://www.moneysavingexpert.com/savings/child-savings-tax-free
    • xylophone
    • By xylophone 4th Aug 16, 10:43 AM
    • 21,291 Posts
    • 12,223 Thanks
    xylophone
    Does your 14 year old have a JISA?

    Presumably your 9 year old has a CTF? See http://forums.moneysavingexpert.com/showthread.php?p=70479762#post70479762
    • Dinah93
    • By Dinah93 2nd Dec 16, 6:41 PM
    • 11,139 Posts
    • 45,510 Thanks
    Dinah93
    Struggling a little to find a suitable account for our children, we would like something we can manage online, no fines for withdrawals (happy for them to be limited to say 3 a year), available from age 2, minimum opening balance of no more than 100 and preferably with 2%+ interest - can't find anything in the guide that meets these requirements - does anyone know of anything?
    LBM 01/11/2016
    Paid off 2,790.96/34,345.83 (8.13%)

    Met NIM 23/06/2008 Engaged 23/08/2009 Married 2010 Baby girl born 2012 - 12 weeks early Baby boy born 2014 - 11 weeks early
    • David.Taylor
    • By David.Taylor 28th Jan 17, 3:18 PM
    • 2 Posts
    • 1 Thanks
    David.Taylor
    Just applied for the Halifax regular saver account at 4% for my sons and wanted to leave feedback which I'm afraid is not good.
    I applied online for my first son and received an email saying my application had gone through and would take a few days to process. I then applied for my second son and it just keeps going to an error page online. Being as the only other way to open this account is in branch I made a visit to my local branch. I had to wait in a Que for 20 mins and was then told that you have to leave it a couple of days between online applications even though they were for different children (which is not stated online), so I asked to open the second account in branch and was advised they could make me an appointment for another day but they didn't have a regulated colleague available but when I complained one miraculously was free. I advised the colleague that I wanted to fund the Children's regular savings accounts from my children's young savers accounts and was advised that they can only be funded from a current account none of which is clear and as I cannot afford to fund there regular savers makes the account a misleading waste of time. I'm afraid Halifax's customer service is absolutely appalling too with all the people in the Que in front of me also being advised that they couldn't help them either. I have banked with Halifax for 5 years now and am really disappointed by the way that they have treated me as a potential customer and current customer and when I rang to log a complaint I was put on hold for 20 mins while my complaint was logged and the operative then cut me off.
    While this account may be appropriate for you please be Warned that the information online is far from complete and in some cases misleading and customer services couldn't be much worse. On that basis i would not recommend Halifax or this account.
    David
    • xylophone
    • By xylophone 28th Jan 17, 3:35 PM
    • 21,291 Posts
    • 12,223 Thanks
    xylophone
    Are the boys old enough to hold a current account?

    http://www.which.co.uk/money/banking/bank-accounts/guides/best-childrens-bank-accounts

    It might be possible to move some money from young saver into a current account for each child?

    Or perhaps you could fund the regular saver from your own current account and "repay" yourself from the young saver, keeping a record of each transfer?
    • Flobberchops
    • By Flobberchops 28th Jan 17, 8:18 PM
    • 477 Posts
    • 326 Thanks
    Flobberchops
    Just applied for the Halifax regular saver account at 4% for my sons and wanted to leave feedback which I'm afraid is not good.
    Originally posted by David.Taylor
    This is similar to the experience I last had when in a Halifax branch - fairly oblivious staff, no clear queuing system, random walk-ins being seen before me although I'd made an appointment, and when the advisor finally saw me I got the impression I was an inconvenience to her and she got rid of me as quickly as possible. It's a good thing that I only really use Halifax for their fairly decent savings products, I'd be looking to switch if they were my main current account providers.

    Anyway: yes, the Kid's Regular Saver has to be funded by Standing Order, which by definition will have to come from a current account (although this needn't be a Halifax one).

    The "couple of days between applications" statement sounds like complete B.S. made up on the spot by a member of staff who wanted to get rid of you, I'm afraid. This is a savings account, not a loan or insurance product, so I can't see any reason there would be a wait period between applications.

    The Kid's Young Saver account allows unlimited withdrawals so you could just withdraw from those to your own current account, and have the Standing Order go out the next day. A bit of a hassle but arguably worth it for the extra interest if you pass by a Halifax at least once a month.

    Your choice of course, I wouldn't blame you for not wanting any more to do with them. Still, you have to do what's best for your boys.
    • David.Taylor
    • By David.Taylor 28th Jan 17, 10:40 PM
    • 2 Posts
    • 1 Thanks
    David.Taylor
    Thanks for your responses.

    My eldest is only 7 so i think too young for a current account.

    Not sure if i can be bothered to go into town every month to withdraw from their young saver to then transfer it but thanks for the suggestion.

    I must add I rang back about my complaint after recieving a text saying we were cut off by which time i was fuming but the woman i spoke with was absolutly brilliant really sympathetic, appologetic and keen to take my feedback and couldnt do enough to resolve my complaint. Why can they not put people like her in branch then they wouldnt need a complaints department.

    Need to take some more time doing some more research to find the best option for them
    • pollyjw
    • By pollyjw 15th Mar 17, 12:18 AM
    • 103 Posts
    • 391 Thanks
    pollyjw
    Hi, after many hours of searching i still can't find a definitive answer - can anyone here enlighten me please?

    I understand a child can earn up to 200 interest on money given by parents each year without it being taxed (100 from each parent).

    I have three children. Does this mean they can all earn the 200 or do they need to split the allowance between them?

    Sorry to ask what seems like a very basic question, i have searched many money advice sites and the government site but to no avail!
    • xylophone
    • By xylophone 15th Mar 17, 12:52 AM
    • 21,291 Posts
    • 12,223 Thanks
    xylophone
    https://www.gov.uk/savings-for-children

    It is per child, per parent.
    • pollyjw
    • By pollyjw 16th Mar 17, 8:43 AM
    • 103 Posts
    • 391 Thanks
    pollyjw
    Thanks Xylophone. I appreciate your taking the time to reply and sending the link. I had read that article (I only say this as it's one of my pet hates to see people posting questions when they haven't bothered to do any research themselves ;-)) but wasn't sure if my comprehension was right. I did hope it was the case that each child could benefit from the tax free amount and will certainly bow to your knowledge on this one! Happy saving!!
    • xylophone
    • By xylophone 16th Mar 17, 9:29 AM
    • 21,291 Posts
    • 12,223 Thanks
    xylophone
    Post 3 here covers the ground

    http://forums.moneysavingexpert.com/showthread.php?t=5174362
    • Tangerine999
    • By Tangerine999 16th Mar 17, 9:42 AM
    • 1 Posts
    • 0 Thanks
    Tangerine999
    My son is 12 and is about to receive a 13K compensation payment for an injury sustained. The payment needs to be locked until he is 18 so will have 5-6 years until it can be accessed. What would be the best (low risk) way to invest the money?

    Many thanks
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