What to choose?

craftymummy_2

Hi, my SS is 16yrs old and he now wants to start saving for driving lessons, car, insurance etc. So basically he's got a year to save up. However we are not sure what's the best way to save? Would he be better off opening a high savings account in and adults name or just a normal young savers account? Or even just a normal bank/building society account? He doesnt wanna touch the money till next year and he's in the process of getting an apprenticeship, so he'll have a bit more to put away every week.
Thanks in advance for your help/opinions.

Lokolo

Why put it in an adults name? Thats silly!

If he earns under his personal allowance he can get tax free interest. If he puts it in an adults name who pay tax, the interest will be taxed. ;)

Have a look around, its a shame that rates are crap at the moment all around but there are a few gooduns out there.

Tesco have a 2.5% savings rate. You could get ISAs for better than this though.

Barclays 3.61% Golden something or rather savings account.

http://www.personal.barclays.co.uk/BRC1/jsp/brccontrol?task=homefreegroup&value=16092&target=_self&site=pfs

jem16

He could use a Regular saver if he wants to save for a full year.

http://www.personal.barclays.co.uk/BRC1/jsp/brccontrol?task=homefreegroup&value=14937&target=_self&site=pfs

craftymummy_2

THanks, will check the Barclays savers out. the only reason why we thought we should put it in an adults name is to get higher rates, but we do know that he'd get taxed on it.