Under 21 Internet Current Account

cornerstone13

My son is 18 and has just started his first job. He's had a student account up till now which he's not allowed to keep. We've been searching for a good internet based current account which will pay him max. interest BUT for the majority of these he either needs to be over 21 or able to pay in £1000 per month (his take home salary is around £900). The only solution we've been able to come up with so far is to open a joint account with me as first named. Does anyone know of any accounts which would be suitable for him ?

morg_monster

I was going to recommend the A&L premier direct account but I see that it is for over 21s. I also noticed that their "Young worker account" is also for over 21s only - what a crock!

I don't think it is a very good idea to open an account in your name. It won't give him a chance to build a good relationship with the bank and get a decent credit rating etc. Also it could get confusing when he sets up standing orders and direct debits, and surely his debit card would be in your name which will be pretty awkward!
Edit - sorry I see you said joint account. I still think this may pose some problems.

If no-one has better suggestions, ask the bank he is with at the moment with his student account, what account they suggest he changes to (they will often change the account type automatically). He may have to put up with rubbish interest rates for a while, but most accounts with high street banks should be able to be operated over the internet at least.

jonesMUFCforever

Open an account at any bank which only requires £1000 per month paid in.
His salary is £900 so once a month all he has to do is go to a cashpoint and withdraw £100 and pay it back in! Voila his account has been credited with £1000 per month.
The bank I work for only require you to be over 18.

cornerstone13

Thanks for this suggestion. I think we were looking for an account that would be easy - an 18 year old remembering to withdraw and pay back in £100 each month, hmmm, I feel more maternal nagging coming on.

It really does seem that until 21 years old or a reasonable salary, the odds are stacked against good accounts - a subtle ploy to get youngsters tied in to the boring, low paying accounts which they then won't/don't move from???

jonesMUFCforever

To be honest if he's getting £900 take home at 18 it won't be long before he will be earning more than a grand per month!
I don't think you will like me for what I'm about to say but I will say it anyway - Its time for you to let go and let him get on with his life.He's already earning good money - be there to support him when advice is needed but let the apron strings go.

simongregson

Smile - https://www.smile.co.uk - pay 3.04% interest, not market leading, but you only need to be over 18.

The terms and conditions state that you must either pay in 1000 or a regular payment each month.

I have found them to be very good in terms of customer service etc. over the past couple of years, although their rates aren't market leading, they are decent compared with the high street banks.

Simon.