Best Childs Account for this amount of money

tashmatthews

Hi

Could someone advise me please

I have over a £1000 to pay into an account for my son who is 8, I want to be able to pay it in and leave it in the account until he is 18, I dont want to have an account where you have to pay in so much every month, but would like him to have a good rate of interest

Can anyone suggest as to what bank account/savings account would be best

Thankyou

martinman3

The best variable rate child's account at present is the Northern Rock Little Rock Account at 3.00% AER
http://www.northernrock.co.uk/savings/branch-and-postal-accounts/little-rock-instant-access/

This pays more than 6mth or 1yr fixed rate bonds currently offered. I would expect interest rates to rise sometime in the future at which point you should consider moving some into a fixed rate bond when they are paying more than this account does.

Gymgenius

Wouldn't NS&I Index Linked savings be more appropriate here?

martinman3

Gymgenius wrote: »

Wouldn't NS&I Index Linked savings be more appropriate here?

You would think so but for a non-taxpayer such as a child they are not necessarily the best option unless inflation really takes off.