Use your child - best child savings account

angelcakes_smw

So perhaps I could keep the savings account going every year (obviously dependent upon interest rates etc in the future) and move the matured savings to another bank? thankyou for your replies

rb10

MarkyMarkD wrote: »

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?

The difficulty is finding an institution that can cope with having trustees of children on 'adult' accounts.

Halifax does allow this - not everywhere does.

If you can find somewhere that will allow this and has a higher rate, then go for it.

MarkyMarkD

I didn't realise there was a shortage of providers allowing "adult" accounts to children.

My daughter has an account with Kent Reliance.

1 year fixed rate bond pays 3.2% - minimum just £100 - children no problem.

Halifax 1 year guaranteed reserve pays 2.45% - minimum £500. :rolleyes:

martinman3

MarkyMarkD wrote: »

I didn't realise there was a shortage of providers allowing "adult" accounts to children.
Yes, there is. Most organisations probably don't want the hassle involved.

My daughter has an account with Kent Reliance.

1 year fixed rate bond pays 3.2% - minimum just £100 - children no problem.

Halifax 1 year guaranteed reserve pays 2.45% - minimum £500. :rolleyes:

You are correct that KRBS currently beats Halifax, Britannia, Cheshire BS, Derbyshire BS on 1yr bonds and I have edited my last post to add them. However, they don't have a product with a term longer than this but the others do.

The savings comparison sites do not list accounts which can be opened in trust for a child (or allow operators on adult accounts as KRBS does) so finding one with a good rate is normally by word of mouth.
So please, instead of criticising you could serve this forum better by simply informing us all of a better product if you know of one.

nan64

I hope I am posting this in the right place. I recently remember reading somewhere that a parent has to pay tax on the interest on a childs savings if the interest was over £100. But, that a grandparent does not pay interest if they are saving for a grandchild - I have been googling this but cant seem to find the answers - Can anyone advise please. Also is there an upper limit you can safely save for a grandchild - not to attract tax.

Many thanks , best wishes
Nan

MarkyMarkD

I have informed you of a better product! I wasn't criticising.

I am surprised that the institutions see it as a lot of hassle.

To open an account for an adult, you need to ID check the adult - which is very often done online (via electoral roll, etc.) but sometimes requires a couple of paper-based IDs to be submitted.

For a child's account operated by the parent, you need ID for the parent (exactly as above) plus the child's birth certificate. That's all.

It's not a lot of extra hassle!

And, as well as that, presumably many children's accounts stay open for quite a while and they aren't going to be "rate tarted" around as much as adult's accounts.

You are making a good point about the comparison sites - they ought to list "adult" accounts open to children in their children's account comparison tables.

clarecat

Hi - my little boy's (18 months old) grandfather in New Zealand wants to give him some money. What is the best way to deal with this - he can't open an account for our boy in the UK or NZ. He could give the money to us, but if we open the account then we are likely to pay tax on it? We both already put £100 a month each into a savings account for him, and I expect that this gift will be around £500. Or is there a better way?

Careful_ly

nan64 wrote: »

I hope I am posting this in the right place. I recently remember reading somewhere that a parent has to pay tax on the interest on a childs savings if the interest was over £100. But, that a grandparent does not pay interest if they are saving for a grandchild - I have been googling this but cant seem to find the answers - Can anyone advise please. Also is there an upper limit you can safely save for a grandchild - not to attract tax.

Many thanks , best wishes
Nan

The child can earn or have interest of £6475 per year (ie the normal tax allowance) before it is taxed, as long as the account is in their name with you as trustee.
R85 tax form will need to be completed or it will be taxed.

Mattron

Can anyone help me please? My Son has just turned 8 and had £2250 in a Halifax Save4it account but I closed it because I thought the interest rate was poor. I'd like to invest this money for him and then pay in a set amount each month but can't seem to find anywhere that will take the £2250 as a lump sum.

Any advice would be greatly appreciated.

glewis

Hi

One on my boys just missed out on Child Trust Fund, born a few weeks before 1 Sept 2002. It there a tax free saving in equity that I can open for him?

ISA you need to be 16 for cash, 18 for equity I think.

So only left with children savings accounts or can I open a low cost FTSE 100 equity saving scheme as I think it would be good to have a mix of equity and cash.

There is always starting a Pension as well I guess but this is a very long term thing.

He currently have about £5K in Nationwide which is added to by grandparents and I currently don't save anything for him but was thinking of £25/month. With the idea that he can get it when he is 21, 15 years time line.

Any comments would be appreciated.

Kind regards
Giles