Use your child - best child savings account

xylophone

https://www.gov.uk/junior-individual-savings-accounts/overview
Your son would be eligible for the JISA. Halifax offers best cash rate if parent has isa with them.
http://www.halifax.co.uk/isas/

CTF may be transferable to the more flexible JISA in due course. https://www.gov.uk/government/consultations/child-trust-fund-consultation-on-allowing-the-transfer-of-savings-from-a-child-trust-fund-to-a-junior-isa

Should we stop that payment and pay it into something better like an Isa or a child savings account?

I can't see why you would wish to do this? What do you think would be better?
http://www.moneysavingexpert.com/savings/child-trust-fund-vouchers

Threadhead

My kids (16, 15, 9) have each been gifted £6.5k from their great grandparents. One child will be going to uni next year (hopefully) and therefore will probably need access to the cash. The other two kids are younger and wont need access to this money for a while.

Any suggestions for the best place to put each child's money?

Thanks in advance

Froggitt

IMHO Halifax JISA 6% (open an ISA with a pound for yourself). £3,600 this year and the rest next year. Stick the rest in the best paying kids account until then.

Reaper

You could also consider an investment JISAs for the youngest one, too short a term for the older ones.

Driller1531

Hello all... and HEEEELP as I need some advice on what to do as I'm getting confused over the pros and cons of Junior ISAs, Regular Savings, Easy Access, Trusts etc.!

I have a 3 year old Daughter.
I am no longer with her Mother and my Daughter lives with my ex-Partner.
I believe that there is a Child Trust Fund in place (she was born in April 2010 and I believe we got £250 (?) to invest for her and her Mother said she put the money with Tesco).

I have been planning to open an account for my Daughter but have not done so due to time and, to be honest, not knowing which route to take because of confusion over the £100 interest rule, whether the money has been given as a gift from a Grandparent/Uncle/other, filling out an R85 (?) to avoid tax but that the address has to be where my Daughter lives etc.

I have a small lump sum from Xmas/birthdays/gifts to deposit plus I will put some of my own money in.
I then want to make reasonably regular deposits to build up a nice amount for her for her first car or first house or University...

Bearing in mind I no longer live with my Daughter and her Mother, what do you suggest is the best route to get the best compromise with interest rates (and trying to avoid paying tax in the future with the £100 rule) where I can make regular deposits with a mixture of people's gifts and my own contributions for her?

How much money would trigger the £100 interest/tax rule in 'today's' money (July 2013) if I were to go with something other than a tax-free type account?

I hope you can help and in 'idiot's guide' type English too please :-)

Many thanks all - I really appreciate your help and time!

Reaper

The simplest option is to simply add money to the existing CTF. That is immune to the £100 rule and any other tax. Your child will gain access to it at 18. Nobody can take anything out until then.

This tax year you can add up to £3600 to it if nobody else has made any contributions. From next tax year (i.e. 6th April 2013) that rises to £3720 each year.

If that meets your needs then no need to look any further. If not then we can suggest alternatives.

Lexis200

Hi there

I'm just after a bit of advice for my sons' savings.

Both my boys had an account opened for them when they were born by their paternal grandmother who recently passed away.

The accounts have now been closed and the money is sat in my hubby's account waiting to get a new, better interest childrens account.

I've just been reading about the interest limit, and as we would be opening the accounts with around £3700 I think we'd hit the £200 in the first year using the account we want.

As the money was originally from their grandmother, would it still be taxed? As I say, the accounts are closed - one was just closed straight away when she passed away so we have the book showing that, the other, which was causing us issues to close (dodgy information from the bank caused us all sorts of problems!) was just drained by £500 each time I went in until it was at nil, and will be closed imminently.

I don't want it in an isa as I don't want it locked away till they're 18, I just want a standard regular saver (have been looking at Halifax's 6% one) so that they can use it for things like driving lessons/insurance at 17.

Would it be really dodgy to give my parents the money so that they can gift it to the boys as a work-around? It's not like I'd be trying to cheat seeing as it didn't come from us in the first place, but as we've now closed the accounts and have the money ourselves I can appreciate that's what it'll look like on paper.

Thanks for any thoughts.

snowman45

both my children have in excess of £10k in national savings account each, but are only earning 0.75% interest on this and i am deeply unhappy with service they are providing. I am looking to move the money to a better account for them.

-First question i have is i bank with lloyds i see they do a kids saver available for people who bank with lloyds at 3% will that stay at 3% for a year or how long?
- second question is there any way i can put there money into an account but have it so they need my signature to access it when there older (dont want them blowing it!)
- any sugguestions on good savings accounts for them and should i keep it in one place long term?

Many Thanks:)

clairbear_3

Hi snowman,I believe although the money belongs to the child it is opened..run and closed by the adult.
http://www.tsb.co.uk/legal/savings_legal/young_savers_account_page.asp

clairbear_3

I notice the TSB young saver only allows ONE per child.Would it be possible for the other Adult to open a similar product at another Bank for the SAME child?
Also you can earn 3% up to 20K..if the parent does NOT pay Tax..do the £100 rules not apply and the child earning 20k tax free?