Hi all

Background:
Husband earns £200k +
I work PT and earn £18k (just about yo go on maternity leave though)

We are currently putting my full salary into my pension (as H is now restricted to the £10k cap and my pot is way behind his).

We use our full ISA limits each year.

We are about to have our second child and have some money stashed away potentially for school fees (around £250k) this is just in a savings account (in my sole name) earning nothing.

I would like to open savings accounts for each child (eg the Nationwide restricted access) to take advantage of the higher rate. I would be looking to put £50k in each child's name.

I understand that children can earn £100 pa each interest tax free. The rate on the Nationwide account is 2.25% and so the interest will be more. I also understand that the additional interest would be payable at my marginal rate.


1. If I open and operate the accounts on behalf of the children am I right that it will be my marginal rate (and not H's) that will be used?
2. As I put 100% of my earned income into my pension does this mean I have a "full" personal allowance to use?
3. I currently receive around £3k interest from my savings - I know this is paid gross. Should I complete a tax return?
4. Are there any pitfalls to my plan? I have discounted JISAs as we will probably want to use the funds towards education and we are adverse to giving the children a lump sum at 18.

Sorry if these are stupid questions - my DH has ostrich syndrome and I want to make sure I am getting things right before making any decisions.