Best fixed rate savings account for children

Pudfish63

Hi, sorry if this is posted in the wrong place, here goes:
I am looking for a fixed rate account for my children's money, at the moment it's in Halifax Save4it and getting 1.5% and I think I could do better if I move the money elsewhere (am already doing the Halifax Children's Regular saver for them). Can I open the ICICI 2yr fixed rate account (4.2%) in my name for them - says on their website you have to be over 18 to open the account? what are the implications of doing so? Or do I need to be content with one of the children's savings bonds like Yorkshire BS (5yrs at 3.75%)? 5yrs seems a long time at only 3.75%. Any suggestions would be most welcome, am getting myself really confused! Thank you.

Mikeyorks

Pudfish63 wrote: »

Can I open the ICICI 2yr fixed rate account (4.2%) in my name for them - says on their website you have to be over 18 to open the account? what are the implications of doing so?

Yes you can open it in your name - the implications are that any tax liability on the interest is yours. You can only file an R85 for gross interest if you're not a taxpayer .... you can't file it on behalf of the children.

Don't forget you need to keep the Save4it open (although you can empty it of funds) if you're still contributing to the RS .... as it clears the balance into there?

Have you read this ..... might be useful :-
http://www.moneysavingexpert.com/savings/child-savings-tax-free

Pudfish63

Mikeyorks wrote: »

Yes you can open it in your name - the implications are that any tax liability on the interest is yours. You can only file an R85 for gross interest if you're not a taxpayer .... you can't file it on behalf of the children.

Don't forget you need to keep the Save4it open (although you can empty it of funds) if you're still contributing to the RS .... as it clears the balance into there?

:T thank you so much for this very helpful advice, really appreciate you taking the time, will read the link above too - I must have read it in the past but definitely should read again!! You guys are just sooo switched on !!

martinman3

Pudfish63 wrote: »

Or do I need to be content with one of the children's savings bonds like Yorkshire BS (5yrs at 3.75%)?

????
Unless someone can prove me wrong, this product doesn't exist.

The highest fixed rate accounts that I know of that can be opened in trust for a child are currently.

National Counties BS 1yr 3.26%, 3yr 3.76%
http://www.ncbs.co.uk/investment/NOTE_34_savings_bond.htm

Britannia BS 1yr 3.2%
http://www.britannia.co.uk/home/_site/channels/savings/savings-bonds/1yr-fixed-bond/index.html

Skipton BS 1yr 3.1%, 2yr 3.25%, 4yr 3.55% -> 4%
http://www.skipton.co.uk/savings_and_investments/bonds/offlineFixedRateBonds.aspx

bootman

You can also have the West Brom 1 or 2 year bond in the children's name in their own right. I called yesterday and the chap said no minimum age limit, just add myself as a signatory.

martinman3

bootman wrote: »

You can also have the West Brom 1 or 2 year bond in the children's name in their own right. I called yesterday and the chap said no minimum age limit, just add myself as a signatory.

Isn't it amazing how fixed rates have increased and restrictions vanished since certain societies had their ratings slashed by Moody's.