Use your child - best child savings account

laykieloo

No my mum couldn't afford a gift each month as I have two boys and this would amount to £50, which she needs all the money she gets from her pension. She struggles to get by from one month to the next just like we do.

I don't understand the reasons for the way they impose tax on childrens savings from parents and not other sources.

Q: Is the tax charged on the £100 intrest or on the amount of money in the account?

ReportInvestor

It is an income tax - levied at the top rate of income tax of the parent donor.

hot_chick_2

To avoid tax on your childrens accounts pass your money to a Grandparent or other relative and let them open a childrens account with the money in their name for your child.

laykieloo - how is anyone going to know that the money was yours to begin with if you pass it on in cash.

ReportInvestor

Careful, hc.

This is a family site that only suggests above board money saving tactics .

deefadog

Just bumping my question from above

My regular saver from the Halifax has 3 months left on it, the save4it account is still up there with the best, but are there any other hi percentge regular savings accounts around at the moment? i am sure i read somwhere about a 12% regular saver account?


Thanks for any help

ReportInvestor

Hi dd .

Sorry we were ignoring you .

I actually phoned up Ipswich BS about this and they said there is nothing to stop an 8.25% Target Saver being opened on behalf of a child.

With all the provisos relating to the discussion immediately above regarding gross interest and the £100 annual interest limit on parental gifts for the interest to remain tax free.

And of course the s/os will have to come from an adult current account - creating potential Revenue problems if you are reclycing the Halifax savings money.

I investigated the entire industry to see if anyone offered a chidren's account that paid S/Os to get round this issue - but drew a blank. You can't get one until 16.

You also won't get the 12%/10% as these relate to regular savers for those who open current accounts (not available to under 16s).

The children's account scene is rather in the doldrums at the moment. In the meantime the Halifax Save4It feeder account is not a bad place for the money while you are making your mind up.

deefadog

Thanks RI - Very interesting, thanks for the time and effort. I will not be recycling the halifax money for another regular saver, it will come part from me and the rest from the family allowance.

I'll keep my eyes open

take care

khanom_2

Hi As a newbie money saver, I have posted 2 posts/questions so far. Neither have been answered. Is this because no one knows the answer or is it because I'm just being ignored?:sad:

Jake'sGran

QUOTE
Rich child's grandparents, aunts, uncles give a child £95K to as a deposit towards a Chelsea pad after uni - not taxable. END OF QUOTE

Reportinvestor - should this not say "providing they live seven years longer after the gift", or have I missed something?

Jake'sGran

khanom wrote:

Hi As a newbie money saver, I have posted 2 posts/questions so far. Neither have been answered. Is this because no one knows the answer or is it because I'm just being ignored?:sad:

Where are they? I can't find them.