Still can't decide

marrioa

With £7k lump sum and £800/month, I've been looking at savings a/cs and regular saving a/cs. I have a 14 year old son as well as a grandson. Can I put money in accounts in their names to maximise interest? Is this horribly sneaky?

I want to thank cheerfulcat especially for the advice given to my other posts. I tried to do this properly, but do not have the know-how necessary to quote or use links - sorry cc. Perhaps someone could help?

Could my husband and I each open a Halifax B/S 10% account?

margaretclare

Maximise your ISA first (Martin calls this a 'money fountain'). You and your husband can each put £3000 a year into a cash ISA. That takes care of £250 a month from each of you.

FirstDirect have an e-saver account at 5%, but you lose interest if you withdraw - no interest paid in the month of withdrawal. They say that this is because this account is designed for savers i.e. people who never want to draw out.

Not sure about Halifax - I have no experience of them.

Aunty Margaret

caveat_emptor

marrioa wrote:

With £7k lump sum and £800/month, I've been looking at savings a/cs and regular saving a/cs. I have a 14 year old son as well as a grandson. Can I put money in accounts in their names to maximise interest? Is this horribly sneaky?
Could my husband and I each open a Halifax B/S 10% account?

By all means open savings accounts for your son and grandson. Most banks and building societies have childrens accounts. Watch out for the headline 10% interest accounts as these have limits on monthly deposits (£10 to £100 in case of Halifax) so yearly rate is only about half the headline rate.
Who knows, your son and grandson might want to repay you for your generosity in the future.