Childrens Savings Accounts

moneypennyless

Can anyone advise me, on the best childrens saving accounts? My kids money is currently banked at the Royal Bank of Scotland. My 5yr old has over a£1000 and my 20 month baby has nearly £400, and I don't think they are getting the best interest. I want to move their money, but I am unsure where to. (they have in credit, what I owe out!!! Something not right somewhere!!)
Please help!!

jimclark1967

Local Building Societies often have special childrens savings accounts, many of which pay over 5% so depends if you have a branch near you.

http://www.moneysupermarket.com/savings/

More widely available is the Halifax/Bank of Scotland Save4it account at 5.05% or the Nationwide SMART account at 5.01% Both of these compare well with the 4.42% offered by Royal Bank of Scotland's Cash Club account (which I assume is what they currently have)

Wish I'd had £1000 at 5 yrs old

jo_b_2

The moneysupermarket link doesn't appear to mention Alliance and Leicester's First Save account. This has been one of the top paying children's accounts in recent times. Think it's about 5.35% or thereabouts.

deemy2004

The first saver is closed issue now, and currently pays 5.25%, thats probably why its not in the tables anymore.

lipidicman

moneypennyless wrote:

they have in credit, what I owe out!!! Something not right somewhere

It certainly isnt, I know this is your childrens money and not yours, but you should service your debt (if it is at a higher interest rate than the savings) first. You could then make the repayments to your children's accounts and they get the interest, rather than the bank/card company.

I would warn you that this would take serious discipline on your part, but could leave your children better off! This is just an idea of what I might do, not advice, do with this information what you will, I take no responsibility!!!

moneypennyless

Many Thanks to everyone who has advised me. I appreciate your help. THe kids currently have a rainbow account with the Royal Bank of Scotland. I am with the Nationwide so I may open a Smart account for them, but I will have a nosy at the moneysupermarket site you gave.

As for using my kids money to pay off my overdraft, no way would I do that!! I said that I owe out what they have in credit, in jest. I have read Martins Money Diet book, which I found very interesting, and I am happy I do not have thousands of pounds of debt. I have an overdraft, with the nationwide at a low percent of interest. I do not have store cards, nor do I have credit cards, loans, hire purchases etc. So Thankyou, but I shall not be using my kids money to pay off something that I am in control with.

KD

I'm just flabbergasted by the amount of info on saving and have read through the forms and articles, however, now struggling to know which way to deal with £5K my mum wants to gift to each of my two children (aged 7 and 11), after my father's death. (I'm aware of the 7 year rule re Inheritance Tax- my mum's determined to live it out!)

My parents always put birthday / xmas money into children's bonds and over many years they have ended up reaching the £1K (original limit), now raised to £3K, (info gained from a post I read).

Are children's bonds worth pursuing? The interest over 5 years doesn't seem so great, in comparison to some of the kids bank accounts. I also read all the stuff on regular savings but I've got a one off lump sum, so that doesn't seem like an option.

I am a single parent, a 40% taxpayer, so I think it would be best to get the money in the kids name, and it's my mum's wish that they don't get access until they are 18 or so and I'm confident I'd be able to 'steer' this.

Any views about the relative merits of children's bonds v's bank accounts, could a mixture be the answer?

I also read in the Child Trust Fund thread about and unwrapped CTF- can someone enlighten me -i don't know what it is could it be an option as my kids won't qualify for CTF.

I now have major brainache and just want to get the £5K invested so the taxman can start his clock!