Use your child - best child savings account

deefadog

It's not for us, it's for them, like i said above, it will be leased until we can pay it off, then it will become theirs.

katies_mum

We opened a Nationwide childs account for our daughter soon after she was first born (13years ago) in our name but re:her name. Ever since then we have had family allowance and small amount of tax credit or whatever its called going in every month now about £20750. Interest recently went onto this account and the paltry amount is scary..so we need to move it. Also this account is registered for gross interest but I`m not sure if this is right (but it is her money). does she have to have a childrens account or can she have any type of account? will she be eligible for gross interest still.

Please can anyone suggest a better rate of interest that we could move it to, that will also allow the two payments in each month - would like reasonable access just incase she needs it for anything. also should we think about taking our names off the account now.

Many thanks

welshmoneylover

For that amount of money you could consider putting it in your names and opening 3 vantage accounts with lloyds @ 4%, the max to have in each is £7k

katies_mum

Hi
Not heard about Vantage Accounts will need to read up. 4% seems really good, would like if its possible to keep the money in one place - but highest rate is most important. I`ll check it out thanks.

rb10

Bear in mind that with the Lloyds Vantage account, £1000 must be credited every month. To do this, you would have to set up a standing order circulating between the three accounts.

Also, the money will need to be held in your name, and not your daughters. This means that you will have to pay tax on the interest.

Another option is to open a Guaranteed Reserve at Halifax: http://www.halifax.co.uk/savings/guaranteed_reserve.asp

You can open this account as a trustee for your daughter, so she would not pay any tax on the interest.

martinman3

katies_mum wrote: »

Please can anyone suggest a better rate of interest that we could move it to .....

Only move part of the total to a fixed rate bond, move the rest to an instant access childs account which pays better.
http://moneyfacts.co.uk/compare/savings/childrens-account/high-street/

In addition to Halifax, other organisations which currently allow fixed rate bonds to be held in trust for a child also include:

Kent Reliance BS. They have 9mths 3.00% AER, 1yr 3.20% AER bonds min £100
http://www.krbs.co.uk/directninemonthfixedratebond.aspx
http://www.krbs.co.uk/directoneyearfixedratebondissueten.aspx

Britannia. They have 1yr 3.00% AER, 2yr 3.50% AER, 3yr 4.25% AER bonds min £1000.
http://www.britannia.co.uk/_site/channels/savings/savings-bonds/index.html

Derbyshire BS. They have 18month 3.25% AER, 1yr 3.00% AER, 2yr 3.45% AER, 3yr 3.95% min £100.
http://www.thederbyshire.co.uk/bonds.aspx

Cheshire BS. They have similar rates to Derbyshire BS as both part of Nationwide BS.
http://www.thecheshire.co.uk/investment-saving-account/fixed-rate-bonds/index.asp

katies_mum

Thank you both for replying I`ll take a look at those accounts.

angelcakes_smw

I have just been looking at the halifax childrens saver at 6% interest for 12 months. Can anyone help me out with what the rate will go down to after the 12 months? Also, would it be best to open a new account with a higher rate (if there is one) in 12 months time and transfer the money across to the new one or just keep the money here for the forseeable future? Is it worth moving bank accounts every 12 months or so or is it more hastle than good? We currently have a childs saver with barclays.

TIA

rb10

angelcakes_smw wrote: »

I have just been looking at the halifax childrens saver at 6% interest for 12 months. Can anyone help me out with what the rate will go down to after the 12 months? Also, would it be best to open a new account with a higher rate (if there is one) in 12 months time and transfer the money across to the new one or just keep the money here for the forseeable future? Is it worth moving bank accounts every 12 months or so or is it more hastle than good? We currently have a childs saver with barclays.

TIA

The rate won't necessarily go down in 12 months.

The way the account works is this:

(1) You pay in between £10 and £100 every month by standing order.
(2) A year after the first deposit reached the account, it matures. At this time:

(a) all the money that's been saved, plus the interest earnt, is moved into a Save4It account. If you don't need instant access to this money, then I'd move it across to a Guaranteed Reserve, which pays a higher rate; and
(b) a new interest rate is set for the Children's Regular Saver. This will be whatever the account is paying for new applicants on this day. Previously it's been much higher than it is now - it was 10% for a very long time - but there's no knowing what it'll be in a year.

(3) You choose whether let the standing order continue (in which case you return to Step (1)), or to stop the standing order (then the account will close).

MarkyMarkD

But Halifax aren't best buy and are unlikely to ever be best buy for all product types. Why on earth should angelcakes leave the money with Halifax on maturity?