savings for 16 year olds

cocoa_2

Hello i would like to ask what the best route would be for my son who turned 16 last week. I have been saving him a little nest egg and do not know the best route to take at present..to get the best deal. At present i have a child account with the bradford and bingley, now Satander..which changes again when he turns 16 so i need to move the money..it is not a very good interest rate at all...any ideas would be most grateful..

Ray-Budday

Hi,

My son is 15 and has received some money from his grandparents, to save for a car when he passes his test.

Child accounts pay rubbish interest and some banks and building societies won't allow certain accounts to be opened until they turn 18.

I am just in the process of opening a 2 year fixed rate bond with Kent reliance building society paying 4.25% (min investment £100). They will take childrens money, and do the electronic id check, meaning you don't need to send off passports, bank statements and all that mallarkey.

I think Chelsea building society will also take childrens money and offer a slightly better rate of 4.4% at the moment, but I sent for the info pack and you need to send off loads of id stuff, most of which a child would not have. The hassle factor put me off with that one.

Hope that helps