Account with good interest where I can dripfeed into another account?

SuperMum2008

I am saving into the halifax regular saver account for my children at 6%. However I want to move the lump sum that was swept from their regular saver into the save for it account into something that is paying a better rate of interest. I then want to be able to pay an increased monthly amount from this new account back in to the regular saver. (Hope that makes sense!)

Can anyone recommend a good interest rate paying account that I can set up DDs from? All the good ones seem to be regular saver accounts in their own right with penalties for withdrawal?

anselld

Accounts for under 18s paying good interest seem thin on the ground. Best I could find was LloydsTSB under 19 bank account. 2.5%

SuperMum2008

Thanks Anselld- not great interest is it, but still better than the 1.05 Halifax Save4it account...will check if I can then set up a dD from that account.

zzzLazyDaisy

Lloyds TSB vantage account pays 4% on balances between £5k and £7k (tiered rate if the balance drops below £5k).

It is a current account so DD is no problem. You do have to move £1000 through the account each month to get the interest rate, but it can be as simple as a standing order out from the Vantage account to your normal current account, and then back again once it has had time to clear.

The £1000 doesn't have to be new money, so if you have the funds for two vantage accounts, just move the £1000 between them by SO each month and the transfer is instant.

anselld

Well, if moving money through the account is an option then A&L Premier Direct, move £500 a month through and get 6% up to £2,500. Only for a year though.

jimbow25

A good reference for drip-feeding accounts is Special_Saver2's regular savings thread - specifically this post which lists accounts where you can make forward-dated payments to monthly savers and so on - unfortunately as you suggest, a lot of accounts are not available to under 18's so this may not be a lot of help.