Use your child - best child savings account

roar349

Just been given 1k for my daughter. She has a CTF but we don't use the maximum allowance at the moment (a bit tight at the mo, so roughly £20 a month), I'm guessing we'd be best of putting it into that rather than opening another account?

Lisa_Ando

I am in the process of selling a house which was originally bought with grandparents as an investment for my children. I hope to have £10k for each child (aged 13 and 9) I would like to invest this long term for them. would it be better to spread the investment of just put it into a high interest savings account. I do not want any investment which risks the inital investment.

Learmouth

I am going snow blind with all the accounts available! My two daughters have 3k and 5k respectively in seperate Halifax Monthly Saver accounts currently paying 2.05% gross inluding the no-withdrawal bonus. I plan to close these and start the Regular Saver at 8% for one year. My quandry is what to the with the Monthly Saver lump sums? Put them in cash ISA's (variable or fixed?) or find a kids account that I can put lump sums into. Any advice much appreciated.

rb10

Learmouth wrote: »

I am going snow blind with all the accounts available! My two daughters have 3k and 5k respectively in seperate Halifax Monthly Saver accounts currently paying 2.05% gross inluding the no-withdrawal bonus. I plan to close these and start the Regular Saver at 8% for one year. My quandry is what to the with the Monthly Saver lump sums? Put them in cash ISA's (variable or fixed?) or find a kids account that I can put lump sums into. Any advice much appreciated.

You don't say how old your children are, but be aware that you are only able to open ISAs from age 16+. Other savings accounts should be fine, just check to see if they have age restrictions.

Robert_Sterling_3

wrote: »

Should i get a grandparent to open an account to avoid the tax ?

If you were the source of the money they invested that would be tax evasion and both you and the grandparents would be guitly of conspiracy to defraud.

You could probably get away with it but then you would probably get away with shop lifting.

I may give you a more positive suggestion after the soaps tonight on TV.

Robert_Sterling_3

wrote: »

My child has just turned 2 years old. She now has almost £3000 in cash savings.
Should i get a grandparent to open an account to avoid the tax ?
Is it ok for me to direct debit into this account without paying the tax on interest over £100.
Is there a limit on how much can be paid to a child in one year ?
Thankyou,
Tom.

Answer Part Two.

It is natural that a parent should wish to do the best they can to help their children.
It may be a mistake to save money for them or even for ther grandparents to save money for them. The problem is that from some accounts the children get the money when they are sixteen and from other accounts at eighteen.
Here is a little ploy to benefit help all involved.
It will not work for everyone.

Here goes.

Instead of giving your children money overpay your mortgage. Keep a note of how much you overpay by.
Grand parents can make gifts to the parents. The parents can use the gifts to overpay their mortgage. The overpayment is like having a tax free savings account and at a higher rate than most savings accounts. I will not persue this any further perhaps others will. I hope somebody gets the general drift. The overpayment is your money but you can dispose of it as and when you choose.
What will happen if .... ?
Decide in real time.

AnMiCh

just came across kidstart.

http://www.kidstart.co.uk/partner/Jessops.aspx

Has anyone had any experience with them?

AnMiCh

Flagstone_2

My daughter is about to turn 4 and over the years we (and family & friends) have put money into an account for her at birthdays, Christmas etc. We are about to meet the £5000 mark and have been told by the Halifax that we can't have more than £5000 in our daughters name. I have tried to find another deal but keep getting directed to share investments but in this present economic climate I am loathe to do. My husband and I have both maxed our ISA limit so cant use that. Any ideas??

rb10

The Halifax rule is £5000 per account title.

So, you can have £5000 in an account titled 'Mr & Mrs Flagstone, trustee for xyz', a further £5000 in a different account, titled 'Mr Flagstone, trustee for xyz', and another £5000 in a third account, called 'Mrs Flagstone, trustee for xyz'. So that's £15000, easy. And if you can find grandparents / aunts / uncles / anyone else who's happy to be named on her account, then using any combinations of their names mean you can open further accounts, with more £5000s.

deefadog

We have a Halifax 10% childrens saver and we have over 5k in there, we have not been told any different?