Halifax Kids Account - What to do after 12 months?

wackojackouk

Hi guys

I have 3 of the kids regular saver accounts (1 for each) with Halifax paying 6%. One of them has just expired after the 12 months and is now 1% the others expire shortly.

Anyone offer some advice where the best place to move the money too? - I will also look at setting up a new account for each child with Halifax as well.

Currently we pay £40 a month into each one (£100 limit per month) - so was wondering if there was a way of reinvesting the cash from this years one that will automatically go into the 1% account (there doesn't seem to be any option on the website to do this).

Alternatively the OH is no longer working (due to 3 kids and Childcare costs) so would it be worth moving the money to another account elsewhere and getting her to complete an R85 form?

Any advice most welcome.

Thanks

WJUK

opinions4u

Automatically? No. It automatically goes in to the Save4it account and waits for you to act.

As they will have close to £500 each you could consider opening Halifax Guaranteed Reserve accounts with the proceeds.

rb10

Remember that although accounts like the Guaranteed Reserve are 'adult' accounts, they can still be opened in trust for a child, and (provided you register it with Halifax) will receive gross interest. Therefore there is no need for the money to sit in an account in your OH's name.

wackojackouk

Thanks guys. From looking at those accounts you get 1% for a 6 month term or 2% for 1 year (over £500)

Is there not anything better out there? or am I missing something?

Cheers

opinions4u

wackojackouk wrote: »

Thanks guys. From looking at those accounts you get 1% for a 6 month term or 2% for 1 year (over £500)

Is there not anything better out there? or am I missing something?

Cheers

Most people probably go for the 2/3 year terms.

Northern Rock have a "Little Rock" account paying 3% and a 2 year fixed term deposit paying 4%.

jennifernil

I am saving for our grandchildren, I am not a taxpayer myself. Once the regular saver has matured I move the proceeds from the Save4It accounts to a better account in my name, then redeposit it at £100 per month into the Regular saver . At the end of each year we "divvy-up" the interest so they get a decent amount.

It's working so far, but they are only 4 1/2 and 7 months! Once rates improve I will put their proceeds into a decent paying savings account.

andypandy1

Similar to jennifernil's advice, I would suggest both yourself and your OH operate a regular saver for each child i.e 6 accounts in total and just use the matured savings to fund them to the max of £100 (i.e. £200 per child) per month and then when the savings run out just revert to your usual payments of £40 per month (£20 for each account in your name and your OH). I know 6 accounts sounds a lot but it can all be done easily online. This will ensure that the savings continue to earn a great rate of 6%, which as far as I am aware is far better than anything else currently available.

ses6jwg

May also be worth considering some sort of investment based regular saver as they will tend to outperform cash over longer periods

wackojackouk

andypandy1 wrote: »

Similar to jennifernil's advice, I would suggest both yourself and your OH operate a regular saver for each child i.e 6 accounts in total and just use the matured savings to fund them to the max of £100 (i.e. £200 per child) per month and then when the savings run out just revert to your usual payments of £40 per month (£20 for each account in your name and your OH). I know 6 accounts sounds a lot but it can all be done easily online. This will ensure that the savings continue to earn a great rate of 6%, which as far as I am aware is far better than anything else currently available.

Hi Andy

It seems that you can only have 1 account per child and I believe IIRC you have to send copies of birth certificates so not much chance of two accounts per child.

Was thinking about Northern Rock 3% Little Rock account but it's a good 30-40 minutes to the nearest branch and branch only

Thinking now I might get the OH to open a Instant Saver paying the highest rate and then top up the Halifax Regular Saver on a monthly basis. (She doesn't work so no tax to pay)

Any suggestions if I go down this route?

Cheers

saving-mad

wackojackouk wrote: »

Hi Andy

It seems that you can only have 1 account per child and I believe IIRC you have to send copies of birth certificates so not much chance of two accounts per child.

Was thinking about Northern Rock 3% Little Rock account but it's a good 30-40 minutes to the nearest branch and branch only

Thinking now I might get the OH to open a Instant Saver paying the highest rate and then top up the Halifax Regular Saver on a monthly basis. (She doesn't work so no tax to pay)

Any suggestions if I go down this route?

Cheers

really? we have these accounts, and both myself and OH pay into one for our children (2 kids 2 adults 4 accounts feeding into 2 save 4 its)

you could pay in £100 in the first few months into new account then reduce to £40 when the investments used up?