Use your child - best child savings account

Anon

Sponge wrote: »

I opened up a 10% regular saver for each of my two children last year. The first account 'matured' and the money moved into the save4it account last month (2nd due this month). I've kept the standing order active, with the same account details. I can't remember what the paperwork says - has the high interest rate, regular saver account closed and the standing order is now going into the crappier save4it account? Or is it now going into a brand new, 12 month, regular saver account at whatever the interest rate was at the time? I believe 8%. (I'd check the paperwork, but I found this thread whilst here at work and got wondering.)

I think I've answered my own question. From their website:

Mine is strange - I opened three accounts (3 saveforit, 3 regular) for 3 children on the same day a few years ago. Last year, 1 matured and transferred into Saveforit, 2 continued with the money staying in the regular savings account - I thought nothing of it at the time. The difference is £100 in interest on the 2 that remained as regular savings, compared to the one that transferred into Saveforit :beer:. I was going to query it, but having read the above, it seems that there may have been an error on two of the regular accounts keeping the balance in, so I would lose out if I raised it :rolleyes:.

As all three are now back in Saveforit paying the pitiful 1%, could I move this into our offset mortgage for a while until the rates pick up?

Many thanks

Anon

incus432

Hi all
I have a query - wonder if anyone can help. I opened a chidlren's account (young saver) with Holmesdale Building Soc a year or so ago. They recently wriote to me saying as he is coming up to 7 yr old he will then have sole control of the account and has to provide a signature.
My first reaction was this was a mistake or joke but apparently not- they claim it is in the 'Terms & conditions ' of the account' biut i cant find it anywhere in stuff sent to me or on their website.

My question is - is this common in other childrens accounts as the woman on the phone claimed? Does it aeem as ludicrous to others as me to think a 7 yr old can have sole control of an account which can have up to 25k in it? (He is just about used to budgeting weekly trip to the sweetshop ). How can i challenge this? In practical terms of course we as parents can supply his 'signature' and keep control. but honestly.....

rb10

incus432 wrote: »

Hi all
I have a query - wonder if anyone can help. I opened a chidlren's account (young saver) with Holmesdale Building Soc a year or so ago. They recently wriote to me saying as he is coming up to 7 yr old he will then have sole control of the account and has to provide a signature.
My first reaction was this was a mistake or joke but apparently not- they claim it is in the 'Terms & conditions ' of the account' biut i cant find it anywhere in stuff sent to me or on their website.

My question is - is this common in other childrens accounts as the woman on the phone claimed? Does it aeem as ludicrous to others as me to think a 7 yr old can have sole control of an account which can have up to 25k in it? (He is just about used to budgeting weekly trip to the sweetshop ). How can i challenge this? In practical terms of course we as parents can supply his 'signature' and keep control. but honestly.....

This isn't typical of most banks. Once the child turns 7, you usually have the choice of retaining the account as a trustee account (i.e. only you have access to the money), or moving the account into the child's name only (so that they have full access to the money).

Gymgenius

incus432 wrote: »

Hi all
I have a query - wonder if anyone can help. I opened a chidlren's account (young saver) with Holmesdale Building Soc a year or so ago. They recently wriote to me saying as he is coming up to 7 yr old he will then have sole control of the account and has to provide a signature.
My first reaction was this was a mistake or joke but apparently not- they claim it is in the 'Terms & conditions ' of the account' biut i cant find it anywhere in stuff sent to me or on their website.

My question is - is this common in other childrens accounts as the woman on the phone claimed? Does it aeem as ludicrous to others as me to think a 7 yr old can have sole control of an account which can have up to 25k in it? (He is just about used to budgeting weekly trip to the sweetshop ). How can i challenge this? In practical terms of course we as parents can supply his 'signature' and keep control. but honestly.....

I see two options here.....
if it's a BS account with a Passbook, hide the passbook...
or
Withdraw the money and open another account which doesn't have such a silly ruling

incus432

thanks for the replies. Do you have any recommendations for a a good fixed term bond (say 5yr) open to 7 yr old? I went to lionks for Yorkshire BS and Halifax BS only to discover late on in the form they have high minimum age limits. And why do children get offered such poor deals?

Gymgenius

Thread number 3 here talks about opening YBS bond in trust.

rb10

incus432 wrote: »

thanks for the replies. Do you have any recommendations for a a good fixed term bond (say 5yr) open to 7 yr old? I went to lionks for Yorkshire BS and Halifax BS only to discover late on in the form they have high minimum age limits. And why do children get offered such poor deals?

Halifax do have fixed term bonds available for children of any age.

The rates are here (up to three years), and here (five year term).

incus432

THANKS . I also see Northern Rock have a 5 yr stepped bond aound 5.5%. Interesting that most comparison sites dont seem to bring up this. However trying to fill in any these org's forms for a trustee acoount is nigh impossible.

nad419

Hi,
I have 3 kids, 12, 8 and 7.
I have never opened any type of account for them.
Over the years, they have saved around £5000 per child as a result of Christmas, Birthdays, special occasions and cash gifts received from all family and friends. It is quite a big Extended Family!

I work and my wife looks after the kids.
I earn below the tax threshhold and therefore do not pay any tax. The rest of my wages is made up with about £200 per week Child Tax Credits and Working Family Tax Credits.
I want to know what is the best savings for my kids as they can expect up to £2000 per year in savings each. Also do i need to declare anything with the Inland Revenue for WFTC? Whenever our yearly WFTC is worked out, they only ask for me and my wifes Bank Statements.
Please let me know of the best savings account for my children, i may need to withdraw from their accounts at times, but always pay the money back in. I would say it is safe to say that i dont mind high interest accounts fixed for a year or so.
Please Help.
Thanks.
Nad.

baggins45

My child tax credits and family allowance is paid into a Nationwide Smart account paying a paltry 0.75%. There is £14000 in this account and I want to move it to a better paying account. Can I move this amount into another children's tax free account or am I better off paying into a higher interest rate account that I pay tax on? Does anyone know what the best account is?:eek: