Use your child - best child savings account

Reaper

Have a look at previous posts in this thread, such as post number 488.

heather8

Froggitt wrote: »

Remember each child is allowed £100 of interest from capital supplied by each parent.

If cash is paid into the account, then how does the taxman know its from Mum and Dad, it could be gifts from Grandparents. especially if deposited at birthday, easter and christmas time!

Froggitt

Because if they investigate you, like they did me, they may ask for proof or evidence as to the source of the funds. That could be a letter from Grandparent detailing the date and the amount of cash given.

Maybe give the passbook to the grandparent to pay in at their local branch......it all helps the evidence pointing your way.

crispybacon1

interested to read children will be taxed at parents tax rate for interest over £100 from monies given to child form parent.

I am a househusband and have no earnings. does this mean I can give my son unlimited amount which he will then earn tax free?

what i want to do is take out a 0% credit card and put the equlivant outstanding balance into his account for him to earn the interest.
then a couple of weeks prior to the credit APR kicking in for the monies to be taken from his savings account to clear creidt card balance.

would this be ok with the HMRC

thank-you

Froggitt

It will be treated as your earnings, so if you are a non taxpayer, then yes you can put it in your sons name with the interest tax free. Have you read the Stoozing board? With the probably 3% balance transfer fee, its unlikely you'll make much profit......also Im assuming you have a reason why youre not putting it in your own name.

IanIan

Northern Rock Regular Saver Issue 3 has just been launched. I have opened one for my daughter (me as trustee for her). I think this may count as a "best buy" for a child's account, because it is instant access, and the rate of 4% is fixed until 1 August 2012. Best to get in quick in case they withdraw the account!

Goozelle

Why does your article not mention NS&I products?

LMDkent

I want to open up an account for my goddaughter where I can put money for her birthday and christmas etc into, what will be the best account to open please

Reaper

Did you read the article this thread is about? It lists the best child savings accounts.

Not that I would go for a savings account myself, I favour investments instead as hopefully more likely to beat inflation in the long run.

Or keep the savings/investments in your own name in a cash or stocks & shares ISA if you have not used up your limits yet.

jabba_the_matt

Hi folks, has anyone come across a decent savings account from RBS? Our 1 year old's Halifax account will come to maturity soon and it would be convenient to have her account at the same place as our our accounts, so I might move the funds there.

Many thanks,

Matt