Use your child - best child savings account

jabba_the_matt

jabba_the_matt wrote: »

Hi folks, has anyone come across a decent savings account from RBS?

To answer my own question, in case anyone else is looking, RBS don't offer anything good at all. Enquiring at the branch, I was offered a Rainbow Savings Account at 0.5%.

doodah

If a child already has one savings account, are they allowed to open another one or a junior ISA?

jennifernil

Generally yes, but there are some restricted accounts. I have 4 accounts for each of my grandchildren, and I expect their other grandparents have some too.

NanaP

Yesterday I tried to open a children's regular savers account at Halifax for my granson who is resident in the USA. I had asked previously at two branches whether there would be any problem with his residency and was told that there would not. During the process of opening the account I was asked to complete a form 'introducing' my grandson (aged 11) as a new account holder, and when I gave his US address, was told that I could not open the account, despite the fact that I would be the trustee and in control of the account even though it is in his name. Perhaps you could make this residency issue clear in your summary for this account, as it must affect a number of grandparents in this position.

lbodily

Hi

I have two children and would like some advice as to what to do with their savings please.

My first child has £5000 to invest and my second has £500 (he's 3 years younger!).

Both have had the Halifax Regular Saver accounts but their money is now currently in just a Nationwide Flex Account and I'm not sure what the best thing to do with it now is. I'm open to putting the money in a notice account or bonds where it can't be touched (but probably only for 1-2 years given the base rate may rise).

Any advice gratefully received please.

Thank you.

Froggitt

Invest in Little Mix to win X Factor IMHO.

arrazello

Hi Forum.
My son is severely disabled and I wish to start saving the portion of his DLA that is unspent each month for a time when it may be needed (to help pay for a big piece of equipment etc). He is currently 14. As the source of his savings is his DLA - is this counted as taxable?

When he comes of age - how do savings work? He is non-verbal and unable to understand the concept of savings, I envisage him living with us for his adult life and the savings maybe being used to help care for him after our deaths.

I have found it hard to get advice (on the Internet) re: this issue.
Could someone please offer some good advice?

Thank you.

jennifernil

The money saved is not taxable, only the interest on it. He is entitled to his own tax free allowance (£7475 this year) so would pay no tax until he had more INTEREST than that.

If you can deposit between £10 and £100 per month, the 6% Halifax Kids regular saver could be a starting point.

Principality do a 4.5% RS if you want to put away more than £100 per month.

Long term, some type of unit trust investment could be better, you can pay in monthly.

Otherwise, the best instant access account is only paying 3% I think.

Once you have a lump sum, you could look at getting a fixed rate for a couple of years, but that would tie the money up.

arrazello

Thank you Jenniffernil.

Do I understand correctly, his interest earned would have to be in excess of £7475 in order to start paying tax.
Not a lot of chance of that. None actually.

I'm confused. I read that he could only earn £100 per year interest before being taxed?

westy22

I'm confused. I read that he could only earn £100 per year interest before being taxed?

Money donated by parents is taxed if the interest earned is above £100 per year. DLA is his income and therefore not donated by parents, so he has a full personal tax-free allowance of £7475.