16 year old school child savings

ElaineAlmond

Please can anyone advise me of the best sort of savings accounts for my 16 year old who is still at school and hopefully going to stay there at least another two years. The Building Societies have said that she is no longer eligible for a childs account and they need to be changed.
Thanks.

ReportInvestor

Hi Elaine and welcome to the site .

A 16 year old can have a mini cash ISA that pays interest gross.

It may not quite get the best interest for her now, but if she keeps the money in there when she is a taxpayer, she will continue to get the interest gross and so it could be a long term benefit.

Joe_Bloggs

Consider the Nationwide Smart account is worthy of consideration at 4.7% for under 18s. See the PDF here:- http://www.nationwide.co.uk/pdf/P5901_Jun05.pdf
J_B.

ReportInvestor

You are unlikely to go wrong with Nationwide to age 17. It is noteworthy that this account was not the best a while ago but has held its own against the retreating tide and now does look to be at the top of the tree nationally for U18 accounts.

But that just goes to show that mini-Cash ISAs are currently paying better rates than children's accounts. And your daughter is eligible for these.

eg Alliance & Leicester 5.2%, Halifax 5.0%, Yorkshire BS internet a/c 4.9% when I last looked.