My Child has Money!!

Basky

Daughter (8) has £2K in bank but rate is useless - what should we do? Happy to lock most of it away until she's 18 - any one got any ideas?

Lokolo

Halifax usually does kids accounts which pay decent interest

Purple_Sparkles

I've been in to see Halifax today and was told they are paying 7% on kids savings.

Mikeyorks

Be a good idea to read this first :-

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

1. If you don't use Cash ISAs .... you could put it in an ISA in your or OH name? Little direct benefit at the moment but could be as rates improve and, presumably, the value will be added to?

2. Halifax have a variable childrens account (Save4it) .... but the rate even there is down to 2.55%. But - you could feed £1200 of the money via the Regular Saver (currently fixed at 8%). But you can only do that at a maximum £100pm by drip feeding it from wherever you're holding it now. (you can't SO from the Save4it .... so if you decide to hold the funds there you would have to withdraw to your own account and SO from there .. bit messy) Or you can open a Regular Saver via each parent ... and that way, process the whole £2k though it. However, do read Martin's note, re how the interest is calculated - as it's obviously only on the average sum.
http://www.halifax.co.uk/savings/children.asp

Also watch you file an R85 to ensure the interest is paid gross ... despite it's a dedicated children's account, it's not automatic.

3. Or you could consider - 10years to go - investing it? Read Martin's article on Child Trust Funds. Your daughter is too old to have had a 'voucher' ... but the principle remains the same and you could invest the £2k on her behalf.

http://www.moneysavingexpert.com/savings/child-trust-fund-vouchers

dwileflunker

Purple_Sparkles wrote: »

I've been in to see Halifax today and was told they are paying 7% on kids savings.

That will be the childrens regular saver account but you can't put the £2K in to start the account off which I think is what OP wants to do.