Nationwide Bond for my Child's Money

bully1234

I have a smart account with the Nationwide. Currently it earns 0.75% and there is £4k in it. I want to move this money into a 5 yr bond with Nationwide at 4.75% with my name and my daughters name on it. I have read somewhere that you won't have to pay tax if it has the childs name is on it. However Nationwide won't let me do this. You can do it for a normal saving account but not for a bond.

Can anyone tell me where else I can invest the money?

Amanda.

DiggerUK

bully1234,
Not the best plan to put money into bonds or notice A/C's for longer than 1 year. As things can turn on a sixpence best to stick to a max 180 day notice.

You can get 3%+, if you make it a trustee A/C for your daughter then you can claim most interest, if not all, tax free.
Best of fortune.

martinman3

bully1234 wrote: »

Can anyone tell me where else I can invest the money?

Yorkshire BS have a 3yr or 5yr fixed rate bond which you can open in trust and, provided that you fill in a R85, interest will be paid gross.
http://www.ybs.co.uk/savings/future/branch_fixed_bond.html
The rate for the 5yr is higher than Nationwide at 5.3%, 3yr is 4.65%, these bonds are branch based.

Concerning the above comment (and others) about terms longer than 1yr, you should realise that mortgage and savings rates are no longer connected to the Bank of England base rate. If the base rate rises it is not a certainty that fixed rate bonds will rise by the same amount. Also, the instant access accounts with high rates have bonuses which will disappear after a year and they don't in general allow accounts to be held in trust.

The YBS product allows a min of only £100 so you can put in whatever you do not need access to.