Need to be 18 for savings account - Is this age discrimination?

moneyballs2

Hi,

I saw a fantastic saving account that would be perfect for me to invest 1k into. The rate is 10% which is about 4% higher than anything else I can find.

It's the Abbey Super Monthly Saver 2.

Why is it that bank accounts make it so that to get a good interest rate you have to be 18? At the end of the day it's still the same money, just that I'm 2 years younger, it's not as if my lack of credit rating would affect a savings account, is it?

I know about the Premier 21 Current account with 10% interest rate, but I'm already investing 1k into that. (1k max for 10% interest)

Because I am only 16 this is my only choice for a 10% interest rate with the other 1k I have, unless anybody knows of another which offers an equally good rate?

Thanks, and apologies for the way the post is worded/structured, it's just I'm rather annoyed.

Energize

I assume it's 18+ because statistically younger people aren't very reliable when it comes to making regular payments and so are likely to have their accounts closed.

It's a monthly saver anyway so you can't put in 1k from the start, the extra interest you would get from this account would thus be negligible.

ManAtHome

I suspect it depends on whether there is a debit card/chequebook attached - think you can't be hounded to end of the earth for debt if under 18...

moneyballs2

Anybody know of anything similar that I could put the money into?

savingpennies

Have a look at the Halifax children's regular saver which allows you to save up to 10%. The tax issue is a still a problem unless you get another relative ie grandparent/aunt/uncle to open it up for you. See their website for further info (sorry not great at attachments).

LongTermLurker

moneyballs2 wrote: »

Hi,

I saw a fantastic saving account that would be perfect for me to invest 1k into. The rate is 10% which is about 4% higher than anything else I can find.

It's the Abbey Super Monthly Saver 2.

Why is it that bank accounts make it so that to get a good interest rate you have to be 18? At the end of the day it's still the same money, just that I'm 2 years younger, it's not as if my lack of credit rating would affect a savings account, is it?

Because this account requires you to open an investment product as well.

It's not age descrimination, although it is widely agreed there's a gap between childrens' accounts and general accounts.

B.E.N

If you've got the Premier 21 account, then can't you open a "Premier Issue II ISA" with A&L, also offering 10% interest up to the full £3,600 allowance?

dunstonh

18 may have been chosen as you cannot enter into a legally enforceable contract until you are 18. Therefore providers are often not willing to offer contracts which involve credit or investment to the under 18s due to business risks.