savings for teenagers

worried_and_confused

jrh2254 wrote:

To open an ISA individuals must be 18 years old or over. However, if an individual is aged 16 and over they are entitled to open a Mini Cash ISA or the cash component of a Maxi ISA.
So you can invest up to £3,000 in a mini cash ISA.

I personally think its a good idea to invest in an ISA even when the young person is not a tax payer as long as the account is competitive. The reason for this is that when the person eventually starts paying tax they will have a few years worth of allowances protected from the taxman!

Sorry yes, jrh is right about the cash component, it's the stocks and shares bit that you can't have until 18.

Bit more info here:

http://www.moneysupermarket.com/ISA/GuideToIsas.asp

44pinkpink

is there a limit to the amount of mini cash isa's someone can have

44pinkpink

and i think the decision now is ....nat west card plus account with first direct mini isa .
thankyou everyone for your help......hope i've used your advice correctly - i find all the different rates and options so confusing!

worried_and_confused

44pinkpink wrote:

is there a limit to the amount of mini cash isa's someone can have

Yes, each person can open and invest in one mini cash ISA each tax year. The maximum investment is £3000 per year.

44pinkpink

thanx for that

Savvy_Sue

44pinkpink wrote:

i feel really thick!

Don't say that! You're learning now you need to!

44pinkpink wrote:

and i think the decision now is ....nat west card plus account with first direct mini isa .
thankyou everyone for your help......hope i've used your advice correctly - i find all the different rates and options so confusing!

We all get confused. The thing to remember is that you can usually change if you find the decision you made was the wrong one - that certainly applies to the NatWest account! And sometimes you have to say "hey, I'm not getting the absolute best rate of interest, but I have got a life!"

cougar_3

Would it be worth investing in a fixed term (say two or three years) investment. That way it would pay out when they're at uni, when they need it most and when they've been planning to use it?

Please check up on the interest rates on these. I'm no expert, but logically they should be better because you're tied in for a few years...

Savvy_Sue

cougar wrote:

Would it be worth investing in a fixed term (say two or three years) investment. That way it would pay out when they're at uni, when they need it most and when they've been planning to use it?

Please check up on the interest rates on these. I'm no expert, but logically they should be better because you're tied in for a few years...

BUT you need to be very certain you're not going to face a financial emergency and NEED that money, even as a loan. From what you said about your almost ex earlier on, that's not necessarily going to be the case ...

I don't see any responses to your question about those Rupert accounts. I'm just wondering if they were a marketing ploy - Rupert the Bear? Can you find any paperwork? If not presumably the money's still going somewhere from your bank account: if you don't know where, ask your bank to tell you!

44pinkpink

Savvy_Sue wrote:

BUT you need to be very certain you're not going to face a financial emergency and NEED that money, even as a loan. From what you said about your almost ex earlier on, that's not necessarily going to be the case ...

I don't see any responses to your question about those Rupert accounts. I'm just wondering if they were a marketing ploy - Rupert the Bear? Can you find any paperwork? If not presumably the money's still going somewhere from your bank account: if you don't know where, ask your bank to tell you!

oh thanx for remembering that bit . i'm at home tomorrow so will look up all the various things.....rupert etc.will let you know.

Lara

I'd also check out Nationwide. My son has had his account there since he was 13 together with card. When he was on his gap travels last year he was able to withdraw money from all over the world without being charged to do this. His friend had a Barclays a/c card and had to pay every time he withdrew money.

Since starting Uni in Sept son joined Nat West student account and got a student rail card. He's used that three times now and the saving is brilliant providing he books train ticket in advance ie day before. I don't know if you can change to a student account if you already have an account there. So something else to think about if she is considering going to Uni.