Best saving account for 16 year old

junior_j

Hello , i am a total newbie to the banking world , i have one debit account but would like a savings account. My debit account is with halifix i dont have any direct debits.. just use that for online shopping or just to draw out money when i want.. but i would like a savings account to save up for big things like driving lessons , first flat ect

Any advice is appriciated im told theres many types of savings accounts.. so im very confused about how to open them how much do u start in them ect, do u have a card to withdraw from them ect.
Jess x

anselld

Firstly, you really need to understand the product you are looking for and decide it is right for you - take time to research rates at places like moneysupermarket.com and check out any account details that look good at the provider's website.

If you are prepared to move from Halifax, have a look at Abbey 16-18 account It pays 4% on any money up to £500 and has a debit card so all your ready-access cash can be earning interest.

After that it depends, so you want easy access or would it encourage you to save by having money "locked away" for a period. For easy access try the Tesco account (5.1% from Jan) or ING Direct. (5%) but keep an eye on interest rates and dont be afraid to switch to a better one. Also look out after a year as the interest rates drop after the first year.

If you dont need instant access and can be disciplined to save every month there are "Regular Saver" accounts paying up to 6% fixed for a year so you are safe if the rates drop any further. But you MUST comply with the conditions, eg imited or no withdrawals and save a minimum amount each month.

If you are not a taxpayer dont forget to ask for a R85 form to get tax-free interest.

good luck!

fullstop

Good advice from Anselld, but if you are a tax payer you should be looking at a cash ISA as well.

suenatal

I'm interested in this question too. What if you have a policy maturing, say £1000, where would be the best place to "save" this, especially if you can't add to each month as you are a student.