Where is the best savings account for a child?

scaffolder

Ask for the Bradford + Bingley first save that pays 10% yearly as long as you don`t with-draw no more that 3 times a yr.
Look in the daily mirror money section under childs savings for more info.
Hope this helps somone???

Ali-OK

I was going to add the 5% Sainsburys Instant Access Savings Account (for adults the rates are pants!), but that B&B one outdoes them all!

mary

You got my hopes there for a moment. I checked out the B&B website
http://branch.bbg.co.uk/retailpages/pages/savings_account_rates.asp?AccountName=FirstSave
It's 5% Gross AER not 10%!. Maybe minimum investment £10.

scaffolder

Read the small print on the web site


6. Interest bonus of 0.50% (gross p.a.) if you make three withdrawals or less in a year. Together with the 5% you said 5+5=10%.

Happy savings people

Kazza242

scaffolder wrote:

Read the small print on the web site


6. Interest bonus of 0.50% (gross p.a.) if you make three withdrawals or less in a year. Together with the 5% you said 5+5=10%.

Happy savings people

mary is right. The B&B First Save rate is:

Gross rate excluding bonus = 4.50%
Gross rate including bonus = 5.00%

The interest bonus you've quoted above is half a percentage point (0.50%), not 5 percentage points. So if you qualify for the bonus rate, B&B will pay you a standard rate of 4.50% gross + a 0.50% bonus = 5.00% gross.

MickKnipfler

Still looks like b&b is the best bet though?

Kazza242

MickKnipfler wrote:

Still looks like b&b is the best bet though?

The B&B account is still a very good account, at 5% (or 4.5% excluding bonus). Just thought it was worth pointing out that the account doesn't pay 10% interest, as said in some posts above.

When opening a children's account, don't forget to register it to receive interest paid gross. Failing to do so will result in 20% of the interest being automatically deducted and sent to the Inland Revenue. To register complete an R85 form: http://www.hmrc.gov.uk/forms/r85.pdf

MickKnipfler

Sure thing...