Rate Tarting with kids accounts

helenrowland

I wonder if someone could advise me, I have 2 sons and both have a Childrens savings Bond with Scarborough Building Society at 5.5%. I would like to take advantage of the Halifax Childrens Regular Saver account at 10% for a year. Between them they have £1200 which I could use to pay in £100/month, the maximum allowed each month to a Halifax account in one of their names.
After the 12 months it goes to a Halifax Save4it account at 4.8%, so I would transfer it back to Scarborough. The trouble is Scarborough only allow a maximum monthly payment of £150 so it would take a while to pay back.
Is there a better place to put the £1200 plus interest in the interim rather than Save4it? I have a postal ISA with Abbey at 4.9% but not sure if I could set up a standing order or how I would move the money easily each month.
I don't mind moving money around to get the best interest for them if it's worth it!
Help!
Helen

grumbler

The only saving account I know that allows standing oreders is Halifax Websaver (SO to Halifax current account only). Coventry Building Society just launched the new current account with 5.1%.
Are you aware about £100 limit on interest that your children can get free of tax on money given by each parent? See Interest on childrens savings.

helenrowland

Thanks for those, So would I be better off limiting the amount to Halifax to under £1000? Or open a Halifax for them both so I won't be anywhere near the £100 limit?

grumbler

helenrowland wrote:

Thanks for those, So would I be better off limiting the amount to Halifax to under £1000? Or open a Halifax for them both so I won't be anywhere near the £100 limit?

Maximum 1-year interest on Halifax Children Reg Saver is just about £65. £100 limit is on total interest generated by all acoounts opened on a child's name. I don't know what to do if total interest is more than £100. I'd register part of the accounts to receive interest net, so that the other part's gross interest wouldn't exceed £100.

helenrowland

In that case if the interest is £65 then I'll be ok for the £1200 as remaining account will only have capital totalling about £200 over the 12 months.
Thank you for your help!
Helen