Children's Saving Accounts - experience of a 16 year old

AngelaN

My mother has been putting away a small amount for her grandchildren each mont and my eldest son - who is her eldest grandchild was getting a low rate of interest on the account and she was worried he may be paying tax as he was over 16.

We went into our local barnch adn they said they didn't believe he was paying tax - but could only offer an ISA as an alternative higher interest account. He is still at school and will be for another two years and therefore isn't earning enough yet to need a tax free account.

We then went on Martin's guide for childrens saving and two of the best buys are for under 16s. The third didn't have a branch near us - so he will now have a third SMART account.

Reason for post - can we have a revised article taking into account 16 year olds who haven't left school. Also I believe that the original; bank was wrong and he should re sign his R68 for teh oringinal account.

CLAPTON

Once children become 16 years old they must sign another R85 if they want their a/c ro remain tax free....
if they have already paid tax then they will have to reclaim it from the hMRC

if ISA offers a good rate of interest why shouldn't your son open one now rather than wait until he is 18.?

Masomnia

Also, remember with an ISA that once you put the money in now, it will continue to accrue interest tax free in years to come. Could come in handy a few years down the line when they are a tax payer.