automated payments from children's savings accounts

tony_w_2

Currently my teenage daughter has circa £8k+ sitting in an instant access YBS savings account earning 5.4% AER. To maximise interest I'd like to open a regular savings account with interest circa 10% AER e.g. HBOS reg. saver account, and drip feed it with an automated monthly payment for the max. permitted monthly amount from the £8k feeder account. The trouble is that most ordinary instant access savings accounts don't allow SO's to be set up against them. Current accounts would allow SO's but tend to be for 18+ and/or offer poor annual interest rates. I would settle for internet access to an instant access children's savings account where I could make manual on-line monthly BACS transfers to the reg. savings account as an alternative.

Any suggestions on a suitable feeder account would very much appreciated - thank you

martinman3

My personal opinion is that the children's regular savers are a waste of time if you are using the child's own money to fund them. They are ok if a parent uses them to donate money to the child from their current account.

I am surprised though that your daughter has all her cash in the One Day/Freedom, unless she needs the instant access. YBS had available two weeks ago but gone now a 7.00% limited issue 2 year fixed rate bond which could be opened in trust or by anyone over 11 years.
They still have the Treasure Bond at 6.3% fixed for 1 year,
http://www.ybs.co.uk/savings/future/treasure/index.jsp
or you could wait to see if another YBS limited issue comes along.

The Derbyshire BS has a 7.01% 1 year fixed rate bond which can be opened in trust.
http://www.thederbyshire.co.uk/savings/fixed_rate_bonds/1_year_fixed_rate_bond.aspx

Always ensure that a R85 is filled in to receive interest gross.