Use your child - best child savings account

geordie_ben

Froggitt wrote: »

First Direct regular saver. 8%.

Each child can earn £100 in interest per parent per year.

Thanks for that

I save for both my neice and nephew... how does that work against the £100 per parent rule?

Reaper

Niece and nephew are no problem as there is no limit to how much you can give. It's only parents that suffer the £100 rule.

Froggitt

Reaper's right. Also, your saving for niece and nephew has no impact on their ability to get interest from money given by their parents.

geordie_ben

Cheers guys! Great help. Just need to figure out the best way to save my money and reduce any impact on my credit file.. I've posted a thread on the Budgeting and Bank Accounts page if either of you have any advice on the matter...

baby_boomer

Philip Green can get his Top Shop dividends paid to his wife in Monaco but we're not allowed to give money to our own children that earns more than £100 pa without it attracting tax at a higher rate than Green pays!

Barmy .

West_Country_Swing

Froggitt wrote: »

First Direct regular saver. 8%.

Each child can earn £100 in interest per parent per year.

I have a current account with First Direct and phoned to ask them about arranging a regular saver account for my daughter (who doesn't have an account with them). Was told it couldn't be set up for a child, so I'd be interested to know if anyone else has been able to do so.

IanIan

I have just opened Futurebuilder savings accounts for my children with Bath Building Society. Pays 5% up to £500 and the 1.1% on the remainder over that amount. I think I keep the balance at £500 and put the interest elsewhere!

MarkyMarkD

baby_boomer wrote: »

Philip Green can get his Top Shop dividends paid to his wife in Monaco but we're not allowed to give money to our own children that earns more than £100 pa without it attracting tax at a higher rate than Green pays!

Barmy .

Eh? There's no connection there!

Anyone can give their money (or shares, or whatever) to their spouse without any tax liability on the transfer. And the funds (or shares) are then taxed in their hands under whatever tax jurisdiction applies.

Interest on money you give to your children isn't tax exempt, because it's too easy a form of avoidance as the parents still control the money.

salwar

My 2 children aged 8 & 11 have each inherited £5000.00 with the condition that they do not have access to it until they are at least 18 yrs old. What is the best way for me to "look after" their money? Savings account, investments (I wouldn't want to do any thing too risky!) or even premium bonds? They each have a Stroud & Swindon Moneybox account and the youngest has a Child Trust Fund. Help!

bha

Just so I'm clear

I can transfer money and so can my wife into both our childrens accounts and they earn £100 tax free every year - and I can withdraw it to pay their school fees (that must come under the taxmans definition of benefitting children)