Use your child - best child savings account

Techno_DoDo

Hi,

I need some help getting a suitable account for the kids. I am probably committing moneysaving heresy by saying that the interest rate is not important at this time. I am really just trying to build the kids saving habit.

What I am after is :

Branch based account, without the whole "you can let the kids manage their money online" nonsense.

A bank book, with a running tally of deposits and current total

Must visit the branch to make deposits or withdrawals

I am not sure if accounts like these still exist.

regards
The DoDo

xylophone

http://www.moneysavingexpert.com/savings/child-savings-tax-free

Torkijo

Hi, could do with some advice as a bit out of my depth with this one.

My dad has, for the last 17 years used National Savings 5 year bonds as small (£25-50) gifts to his 6 grandchildren (Only 2 are mine). He has now decided he doesn't like the change in what they have done so wants an alternative.

This is not a monthly saving thing, just at Birthdays and Christmas and he must be able to do it by post or online as he is late 70's and lives in a small village miles away from a large Town, let alone a city.(I could probably go to a branch for initial set up if needed)

Our kids already have CTF so Junior ISA's are out. Preferred option would be something that has the highest interest rate with 2nd preference being something that locks the money away until the Kids are 18 at least :-)

Any thoughts?

mbailey

Torkijo wrote: »

Hi, could do with some advice as a bit out of my depth with this one.

My dad has, for the last 17 years used National Savings 5 year bonds as small (£25-50) gifts to his 6 grandchildren (Only 2 are mine). He has now decided he doesn't like the change in what they have done so wants an alternative.

This is not a monthly saving thing, just at Birthdays and Christmas and he must be able to do it by post or online as he is late 70's and lives in a small village miles away from a large Town, let alone a city.(I could probably go to a branch for initial set up if needed)

Our kids already have CTF so Junior ISA's are out. Preferred option would be something that has the highest interest rate with 2nd preference being something that locks the money away until the Kids are 18 at least :-)

Any thoughts?

If they have CFT's already, can you not contribute to them?

I have 2 kids with CFT's and I have kept them as cash CFT's at the moment as the investment CFT's are very limited. (Hopefully one day they will merge to JISA, but will have to wait for that one!)

If you check out Furness BS they have a Cash CFT offering 3.05% which is market leading rate I believe. Furness BS seem to be the only provider offering the same rate for a Cash CFT and Cash JISA.

You can't apply online, but have to call them.

I only know, as I did so myself, as transfering our Cash CFT's from Yorkshire BS as they only paying 2.3% now.

If you want a normal saving account, then the Northern Rock (Virgin money now) Little Rock account is the best still. With this account it is operated in branch, but you get an account number so you can transfer money in online to the account.

mbailey

Techno_DoDo wrote: »

Hi,

I need some help getting a suitable account for the kids. I am probably committing moneysaving heresy by saying that the interest rate is not important at this time. I am really just trying to build the kids saving habit.

What I am after is :

• Branch based account, without the whole "you can let the kids manage their money online" nonsense.

• A bank book, with a running tally of deposits and current total

• Must visit the branch to make deposits or withdrawals

I am not sure if accounts like these still exist.

regards
The DoDo

Don't go to Halifax, as they have taken away account books now. For a 7year old you get a cashcard, but under 7's get nothing!

I think Nationwide still has an account book.

The other one is Virgin Money (Northern Rock) Little Rock. That is account book and also the best rate!

dottodot

Techno_DoDo wrote: »

Hi,


What I am after is :

Branch based account, without the whole "you can let the kids manage their money online" nonsense.

A bank book, with a running tally of deposits and current total

Must visit the branch to make deposits or withdrawals

Hi Techno DoDo. My daughter has the Little Rock account - now with Virgin money and ticks all your boxes, plus a decent enough interest rate:)

sophsamjam

I have 3 children, 7, 5 and 10 months.

The older 2 have CTFs and the younger one obviously qualifies for an ISA but I haven't opened one yet. I currently save 30 per month per child but I am questioning my use of the stakeholder CTFs.

I am concerned by their lack of performance and the fact that the money automatically becomes the child's at 18 - what if they are going through a rebellious patch?!

I was also thinking it would be best to pool my resources and be putting 90 per month into one account. I of course still want this to be tax efficient and do not want it to affect my own personal isa allowance.

Someone also made the point that whilst saving for my children was a good idea it would make sense to have access to the money if we hit bad times. If I opened a children's regular savers account can it only be in one child's name? As long as it is instant access I presume I can withdraw money if need be although I hope I never have to. Is it right that I can retain control of the account even when they turn 16?

xylophone

Money given to your child becomes your child's absolutely.
If you give money to your child outside tax privileged accounts like CTF/JISA see http://www.hmrc.gov.uk/tdsi/children.htm
re £100 rule.

xtinataguba

we've tried to save for our child, but in the end we also end up spending it. so save again, and spend again. very bad right? do you have any idea on how to save for our kids, cause i have 3 kids, and we're not that rich to have money always, so we just want to give them something in the future. but until today. we cannot continue the "saving" part for them,

ses6jwg

I got a letter saying my kids regular saver is going to mature and instead of going to branch they can arrange for the matured funds to be paid somewhere, and the 6% saver to carry on

but can the funds go to a Lloyds TSB young saver account?