Chidren's (regular) savings account's - which one?

Brduk

After a disappointing phone call to Halifax about my daughter's regular savers account - where they advertise 10% interest in huge letters, but don't tell you that only money which has been in the account for 12 months qualifies for this rate, therefore in *real money* terms interest works out about 5.1% on the balance each year - and her Save4it account where the interest has dropped from 6% Feb 08 to 1.55% March 09. Combine this with Halifax closing the original Save4it account without reason, denying receipt of the child's birth certificate despite this being provided in my not-so-local branch, and general incompentence throughout the entire process, i'm on the lookout for a new regular savers account for my daughter.

I'm hoping the good folks of MSE can provide some recommendations. We have around £550 of her savings to transfer over, and pay in £40 a month on the regular saver account.

TIA for any help.

alastair_h

Sorry I can't give you any personal recommendations, please find attached links which may help regarding Child Trust Funds, Children Saving on the high street & others.

http://www.moneyfacts.co.uk/money/savings/13/child-trust-fund-savings-accounts.aspx
or
http://www.moneyfacts.co.uk/money/savings/14/childrens-savings-accounts.aspx
or
http://www.moneyfacts.co.uk/money/savings/15/childrens-savings-accounts-other.aspx

opinions4u

Brduk wrote: »

After a disappointing phone call to Halifax about my daughter's regular savers account - where they advertise 10% interest in huge letters, but don't tell you that only money which has been in the account for 12 months qualifies for this rate

Why would you expect them to pay interest on money that isn't in the account?

They actually pay the 10% (8% now) on money from the day it is received in the account. So the first payment gets 12 months interest, the second payment gets 11 months and so on.

Can you tell me of any bank that pays interest on money when it's saved with a competitor because I'd like to sign up!

therefore in *real money* terms interest works out about 5.1% on the balance each year

Plus whatever interest you were earning on the money before it was transferred in to the Children's Regular Saver account.

Banks are required to advertise the AER on accounts to allow you to compare like with like. They did this, and the figure they gave was fair and accurate. If you had compared regular saver accounts with other banks, the 10% rate they quoted would have allowed you to compare like with like.

and her Save4it account where the interest has dropped from 6% Feb 08 to 1.55% March 09

Oh get real. I know you're a first time poster, but have you not been aware that interest rates have dropped over the past 6 months. This account is still paying more than BofE base rate.

Combine this with Halifax closing the original Save4it account without reason, denying receipt of the child's birth certificate despite this being provided in my not-so-local branch, and general incompentence throughout the entire process, i'm on the lookout for a new regular savers account for my daughter.

C*ck ups aren't clever. That said, the Halifax Regular Saver is the best on the market and as kids' accounts go, Save4it is pretty good too.

You won't beat 8% anywhere. If you leave things as they are, the account will automatically renew at maturity. No more paperwork.

SoloSailor

Totatly agree with "Opinions4U" post above.

If you still have the Childrens Reg Saver with Halifax, take my advice.
Fill it up to the max for the remainder months if you can. I don't think you will find any better! My kids have 2 each, one in both parents names. Lucky B*ggers...

If you can find anthing better in these present times, then let us all know.

bootman

Do these accounts take ages to open? I did this online on the 5th march. I got an email confirmation saying will have stuff come through the post, but as yet not heard a dickie bird.

opinions4u

bootman wrote: »

Do these accounts take ages to open? I did this online on the 5th march. I got an email confirmation saying will have stuff come through the post, but as yet not heard a dickie bird.

It certainly used to be a manual process for the Kids version when you apply online (the adult one sails through online, the kids one gets churned out in a processing centre for people to pack the form in to envelopes for you!!).

I'd suggest calling them on 08457 28 38 48 or pop in to a branch with ID and the child's birth certificate.

They'll probably open a new one there and then!

welshmoneylover

I opened one recently for my DD, the forms took about 16 days to arrive after online application.
I guess they are kind of busy right now with lots and lots of parents opening these accounts lol