Halifax Children's Regular Saver

Bisoy

Hello fellow MSEr's,

We just have received the first anniversary interest on our kids regular saver. We have made a total deposit of £ 1130 on each of our 2 kids and interest credited was £ 53.70 each. I'm not good in maths so I'm asking if does it sounds right? Secondly all the money invested is now sitting on their save 4 it account which is not paying good interest either. Is there any other high paying childrens account out there or should we move it to a no notice high paying account such as ybs e-saving? Any thoughts greatly appreciated.

Cheers

ReportInvestor

Children's accounts have been a little in the doldrums recently.

I don't think it's currently possible to get 5% without going down the Fixed Rate route e.g. Cheshire BS 4 Year Black Cat Bond @ 5.2%, or tieing the money up until 18 (Harpenden BS 18 Club @ 5.15% or going for another regular saver e.g. Scarborough Children's Savings Bond for 3 years @ 5.5% variable but maximum £150 per month.

4.74% from Yorkshire BS looks to be the best you can get from a well known national provider in a straighforward instant access account.

## - All rates before any September 1st rises.

regularsaver1

The Save4It pays 4.80% AER gross. Not too bad for instant access

unless you don't mind fixing it up

ReportInvestor

Correct. I missed that one. It's the tops .

Although it didn't stop one MSEr a few days ago say that the Halifax Save4It paid a lousy rate .

regularsaver1

Its not a bad rate though is it 4.80%??


Back to OP's question about interest on Children;s regular saver - remember that the £1130 was not there the whole 12 months, but was drip-fed

ReportInvestor

It's the top rate .

Not everything you read on MSE should be taken at face value.

conradmum

The amount of interest sounds about right. I had £1300 in my son's and it made about £66 I think. Your Halifax account should still be open and still paying 10% last I looked. You should put the money into an instant access savings account and drip feed it again into the regular savers account. It sounds like the account it's in pays a reasonable rate, but I'm not sure if you can set up a standing order in it.

regularsaver1

No you can not have a standing order on the save4it.

My neice's regular saver has matured - have now started new year and it is still 10%

Bisoy

Thanks for all your replies. I also do know that their save 4 it is paying 4.80% gross AER which is not to bad. The question that I was trying to raise is that, would we benefit by moving their save 4 it money to let's say YBS e-saver account paying 5.10% or it's better to keep where it is? Just a query of a confused parent who wants better outcome in terms of interests paid.

Cheers

Mikeyorks

Bisoy wrote:

We have made a total deposit of £ 1130 on each of our 2 kids and interest credited was £ 53.70 each.

Assuming you paid the £1130 in fairly evenly over the year - then the average would have been around £550? At 10% that is £55 in Interest. So your £53.70 looks right.

Your Halifax account should still be open and still paying 10% last I looked

Yes - as the 7% 'adult' saver from Halifax - it remains open - but are you sure the 2nd (and subsequent years) pay 10%. This is from the Halifax FAQs :

How long is the 10% interest rate payable?
The 10% rate is fixed for one year from when the opening credit is received. If you continue to fund in subsequent years, we will communicate the new fixed rate to you.

...... and that does not, to me, sound like 10% will be paid in subsequent years?

regularsaver1

my 10% is definately still paid on the second year