Excess money for child savings - already filled £1,200 tax exempt!

blondnc

Hi

We have been very fortunate with how much we have received in cash for our daughter since her birth. So much that we have already used up her allowance for tax free savings.

What should I do with the rest as I would like it to earn as much interest as possible. Plus I wouldn't want it locked away too permanently as we might wish to invest the rest in her next yrs worth of allowance!

We have alo looked at taking advantage of a regular savings and 'dripfeeding' but I know that you can't set up direct debits to our savings accounts, so is anyone aware of which ones you can?!

Thanks in advance!

Lokolo

I think you are mistaken about how much your daughter can have tax free.

Any money from parents can have £100 tax free interest.
Any money from other parties can have up to her personal allowance (£6,475) tax free.

This would mean she would need £215k in savings at 3% before having to pay tax....

Your title says £1,200 - is this the interest or capital?

king100

Sounds like capital as exactly the same amount you are allowed in a CTF every year.

blondnc

Yeah I think it is capital.

So what kind of savings would you suggest I use for the rest of the money? A general savings account?

So, (my understanding on tax free savings and entitlements is quite limited) when they state 'you are allowed to save x a month tax free' is that purely for that particular CTF?

Any, in terms of money from parents, is that £100 a yr, a month...?