Can I make my nephew's savings more?

villafan10

Hello, I'm looking for some advice on my nephew's savings. I opened both a Halifax Save4it and Halifax Children's Regular saver for him. I put £10 away every month for him. I opened this when the Save4it was about 6% and the regular was 10%. Since the recession these rates have obviously bombed and now stand at 1.05% and 6% respectively. The regular saver is still market leader but the save4it no longer is. Around 6 months ago I had the idea to try and improve his amount slightly each year by using the dripfeed method. I now put £100 in to his regular saver each month and take £90 out of his Save4it. So I'm still contributing £10 but he's getting more money in to the 6%.

What I'm asking is, is there a fixed rate savings account open to children? My nephew is 5 years old now and because the Save4it is only viewable online I have to go to the bank every month to withdraw the £90. It's becoming a bit of a bind so I'd prefer to revert to paying in £10 a month and dunking his £1,200 in a fixed rate for the maximum term.

I've had a look at a lot of fixed rate savers and they seem to have a minimum age limit of 16 or 18. Halifax's fixed rate deal is the lowest I can find which is 11 years old.

Could anyone offer further advice?

Speculator

Clydesdale pay 5.10% fixed for 5 years.

http://www.cbonline.co.uk/personal/savings/child-savings-bond/

http://www.moneyfacts.co.uk/money/savings/15/childrens-savings-accounts.aspx

opinions4u

villafan10 wrote: »

Hello, I'm looking for some advice on my nephew's savings. I opened both a Halifax Save4it and Halifax Children's Regular saver for him. I put £10 away every month for him. I opened this when the Save4it was about 6% and the regular was 10%. Since the recession these rates have obviously bombed and now stand at 1.05% and 6% respectively. The regular saver is still market leader but the save4it no longer is. Around 6 months ago I had the idea to try and improve his amount slightly each year by using the dripfeed method. I now put £100 in to his regular saver each month and take £90 out of his Save4it. So I'm still contributing £10 but he's getting more money in to the 6%.

What I'm asking is, is there a fixed rate savings account open to children? My nephew is 5 years old now and because the Save4it is only viewable online I have to go to the bank every month to withdraw the £90. It's becoming a bit of a bind so I'd prefer to revert to paying in £10 a month and dunking his £1,200 in a fixed rate for the maximum term.

I've had a look at a lot of fixed rate savers and they seem to have a minimum age limit of 16 or 18. Halifax's fixed rate deal is the lowest I can find which is 11 years old.

Could anyone offer further advice?

You could open a Halifax Guaranteed Reserve as trustee for your nephew.

No minimum age on that.

villafan10

appreciate those replies guys. Problem is, the Clydesdale one is branch operated only, and living in Birmingham means according to their search, there isn't a branch within 30 miles. I presume they're all a lot further north?

Opinions4u, the Guaranteed Reserve has a minimum age of 11. Are you saying I should open it FOR him? If so, what is the tax implications on that? If he gets taxed at my basic taxpayer rate then there's not much point in doing it really.

villafan10

villafan10 wrote: »

appreciate those replies guys. Problem is, the Clydesdale one is branch operated only, and living in Birmingham means according to their search, there isn't a branch within 30 miles. I presume they're all a lot further north?

The nearest branch I can find to me is Milton Keynes. Why there's a branch there I do not know! I don't fancy driving for 1 hour 40 minutes there, followed by 1 hour 40 minutes back, just to open a bank account..

opinions4u

villafan10 wrote: »

Opinions4u, the Guaranteed Reserve has a minimum age of 11.

They will open an account in the child's name only where the child can provide a legible signature.

They will open an account with an adult named as trustee for the child from birth.

Whoever gave you the age 11 information is incorrect (although that is the age they allow cash cards, online access and Fixed Web Saver accounts to be operated).

Are you saying I should open it FOR him? If so, what is the tax implications on that? If he gets taxed at my basic taxpayer rate then there's not much point in doing it really.

If the funds have not come from parents and his total income is below his personal allowance (£6,475 or whatever) then a parent can register him to receive interest gross by signing an R85 form. Same applies if his total interest income for a year is less than £100 per parent.

If you open the account as trustee you have control of the funds but they are held for the benficiary of the child.

villafan10

Sorry to keep asking questions.. does his total income include the money I'm giving to him or just the interest made on that money?

I got the aged 11+ things off their actual application t+c's
http://www.halifax.co.uk/savings/guaranteed-reserve-3yrs.asp

opinions4u

villafan10 wrote: »

Sorry to keep asking questions.. does his total income include the money I'm giving to him or just the interest made on that money?

Interest. Not captial.

I got the aged 11+ things off their actual application t+c's
http://www.halifax.co.uk/savings/guaranteed-reserve-3yrs.asp

Certainly a reasonable conclusion to draw!!

You'd need to open it in branch or by phone to do things the way I suggested. Their online opening won't support an under 11 opening an account.

villafan10

mate, I'd like to thank you for being so helpful. Cheers