Daughter's savings

devilredray

Hi All,

My daughter recently had her 16th birthday and I received a letter from the Halifax regarding her savings of which I am the trustee advising me that she will start paying tax. They have advised me to close account and re-open in her name only.... but I am now looking for the best place to invest her savings for at least the next 2 - 3 years, can anyone advise me where is the best place to invest and get the best interest?

many thanx in advance

Ray

Rikki

At sixteen she needs to complete a R85 form for the account.

Do you pay tax? If yes you need to take your name off the account. No you too need to complete a R85 form

Lokolo

Is she fulltime working?

If she doesn't pay income tax then she more than likely doesn't pay tax on her savings. She can open a savings account in her name, fill in an R85 and hand it into her bank.

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Or she can now make full use of her Cash ISA allowance where each tax year you can put £3,600 in and get tax free interest (obviously if she isn't a tax payer she gets tax free interest anyway, see above).

devilredray

Thanx for the info I will act upon it