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What's best for my GDs money please?
Spiggle
Posts: 1,787 Forumite
Hi and thanks,
I have been saving £10 per month (I have increased the monthly amount occasionally but back at £10 now) as a trustee for my 7 year old granddaughter for the last three years with Halifax Children's Regular Saver (my how the rates have fallen - was 12% when I started!). I (we) hold a linked Save4It (currently 1.05% interest) account into which the saving funds have been swept on maturity each year. (Relevant tax forms have been completed so no tax deducted)
With the maturity of this years account I reckon there will be around £400ish in there. (Makes me feel very stingy when I see some of the amounts other GPs are saving for their GC but its all I can afford and another GC arrives later this month!). I fully intend to continue with the Halifax CRS (can't find anything better) but want to maximise the return on the Save4It balance.
I used the link from the main website to compare children's accounts and discovered the tiered Bath Building Society Future Builder which pays 5% on balances up to £500 and 1.10% (both variable) on balance above that. This seems an incredibly good deal especially as that's the rate on the Principality CRS and it's only 1% below the Halifax CRS. Even the second tier rate is higher than Save4it.
Being naturally sceptical and subscribing to if it looks too good to be true it probably is, does anyone know of any catches with this account please? Does my plan to move the accrued savings seem a good idea?
Secondly, when GC no.2 arrives she will benefit from the CTF payment of £250. Could this be put into a BBS Future Builder account too? Or does it have to be put into a trust fund? My daughter is not very good with comparing savings/interest rates/benefits etc of accounts and so any advice would be more than welcomed.
I will also begin a Halifax CRS (assuming it remains the best buy) for GC no.2 and would similarly seek the best deal for the matured fund 12 months after opening.
Sorry this looks like war & peace and thank you in advance for any advice or observations.
Spiggle
I have been saving £10 per month (I have increased the monthly amount occasionally but back at £10 now) as a trustee for my 7 year old granddaughter for the last three years with Halifax Children's Regular Saver (my how the rates have fallen - was 12% when I started!). I (we) hold a linked Save4It (currently 1.05% interest) account into which the saving funds have been swept on maturity each year. (Relevant tax forms have been completed so no tax deducted)
With the maturity of this years account I reckon there will be around £400ish in there. (Makes me feel very stingy when I see some of the amounts other GPs are saving for their GC but its all I can afford and another GC arrives later this month!). I fully intend to continue with the Halifax CRS (can't find anything better) but want to maximise the return on the Save4It balance.
I used the link from the main website to compare children's accounts and discovered the tiered Bath Building Society Future Builder which pays 5% on balances up to £500 and 1.10% (both variable) on balance above that. This seems an incredibly good deal especially as that's the rate on the Principality CRS and it's only 1% below the Halifax CRS. Even the second tier rate is higher than Save4it.
Being naturally sceptical and subscribing to if it looks too good to be true it probably is, does anyone know of any catches with this account please? Does my plan to move the accrued savings seem a good idea?
Secondly, when GC no.2 arrives she will benefit from the CTF payment of £250. Could this be put into a BBS Future Builder account too? Or does it have to be put into a trust fund? My daughter is not very good with comparing savings/interest rates/benefits etc of accounts and so any advice would be more than welcomed.
I will also begin a Halifax CRS (assuming it remains the best buy) for GC no.2 and would similarly seek the best deal for the matured fund 12 months after opening.
Sorry this looks like war & peace and thank you in advance for any advice or observations.
Spiggle
Mortgage Free October 2013 :T
0
Comments
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The Bath Building Society 5% has no catches, but interest it only decent upto £500. Also its variable, so the rate can change at any point, so in 6 months it could be down to 1%.
No idea about the CTF sorry.0 -
Thank you very much for your advice, I really appreciate it.Mortgage Free October 2013 :T0
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