Savings Account for a 14-Year-Old

Razoo

Is it only Halifax/Bank of Scotland that offer an online account for children aged 11-years and above?

Their Online Web Saver (Extra), currently paying 2.6%, seems pretty good, and both of my children have one of these accounts. However, I would like some eggs in another basket. Does anyone know of a similar account offered by another provider?

My son is 14-years-old, and my daughter is 15. I'm looking for an account in their own names that pays a decent interest rate (>=2.6%). The account doesn't have to be online, and the money could be locked away for a year.

Thanks,

Razoo

Reaper

You can do better. See the childrens savings article on this site.

Razoo

Reaper wrote: »

You can do better. See the childrens savings article on this site.

Thanks for the reply.

I had already looked at the Children's Savings article, and I'm not sure that my children can do better than the Halifax Web Saver (Extra) at 2.6% in the circumstances.

Because my children already have lump sums to invest, Regular Saver accounts are out. Halifax's 6% Regular Saver initially sounds great, but the bulk of my children's money would have to languish in a feeder account that doesn't pay a good interest rate. The Halifax Web Saver (Extra) at 2.6% cannot be used as a feeder account, due to withdrawal restrictions. Furthermore, my children couldn't transfer much into a Regular Saver account anyway (Halifax - max. £100/month, Principality - max. £150/month, but interest only 4.5%).

The only account that seems to beat the Halifax Web Saver (Extra) at 2.6% is Northern Rock's Little Rock account paying 3%. However, the Northern Rock account can only be opened in branches, and there's not one near me.

Other than that, to beat the Halifax Web Saver (Extra), my children's money would have to be locked away for 2-years or more, which I don't want to do.

Or have I missed something?

Razoo

Reaper

I was indeed thinking of Northern Rock for lump sums and Halifax for the regular saver, but if those are no good to you then you probably can not do any better than you have.