Save4it, Halifax Regular Saver

villafan10

I opened a Save4it account for my nephew 4 years ago and have recently got into moneysaving. I was looking at opening up a Halifax Children's Regular Saver for him to dripfeed. I know you can make withdrawals from the save4it but does anyone know if you can do standing orders from it? I've just set it up for online banking and it appears in my list of accounts (the save4it) but it does not appear clickable. Is this due to it being new? or is it just because you have to go into branch to make withdrawals. If so, how do other people dripfeed for children's accounts?

Mikeyorks

No ..... I'm afraid you can't SO from the Save4it account, it's not because it's new on your Portfolio.

Read the item relating to the 10% Reg Saver here (a page down from the point of entry of the link) :-

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

If it's money you wish to re-circulate through the Reg Saver from the Save4it ...... the best way is to move funds out of the latter and into a good paying saving account (Halifax were doing 5.8% on their Websaver until recently - but now dropped back to 4.3%) and then drip feed from there. But the best way is to attempt to fund the Reg Saver with 'new' money (even if well below the max £100 monthly) - that way you get the full 10% without the overall return being diluted by sitting in a lower paying 'drip feed' account?

villafan10

Mike, your response was very helpful. Now I was wondering something else. It puts the onus on me but I'm sure you can understand I want what's best for my nephew and want to get the best out of savings accounts. So you've confirmed I can't SO from Halifax save4it to the regular childs saver but would I be right in saying there's nothing stopping me creating a standing order from my current account into his childs saver, then going into the branch and just withdrawing what I'd credited his regular saver? Therefore I AM dripfeeding, just using more effort. One final question, if I do do this, would that money that I'd obviously reimburse myself be classed as income if I get dished a tax return or not?

P.S sorry if these questions have obvious answers, I'm new to saving and want to maximise returns but obviously don't want to be the wrong side of the law.

Mikeyorks

Nothing to stop you doing that - and nothing in it to excite HMRC. As your current account will prove that it's simply a re-imbursement from the Save4it account, in order to recycle money you're unable to achieve from the latter account?