Under 18 bank account

Plxply

Hello,

I am currently 16 years old and have two accounts with Lloyds TSB and HSBC, with Lloyds I currently get 2.5% interest on the money within my account and it is where I store the vast majority of the money which I have. With HSBC I only get 0.5% (however when I signed up a few years ago this is what all banks offered) and as such I have kept it open with them mainly to buy online with (I like the idea of leaving £50 in HSBC whilst transferring money when needed and using that when spending in the event my card is stolen or cloned).

However, I am getting close to the limit of Lloyds TSB where they start to only give me 0.1% on my money which goes over £2,500 although I could use HSBC however this account only gives me 0.5% and as such I'm wondering which Under 18 bank accounts will provide the best interest rate for me? I would prefer a bank which would provide me with a Visa Debit card as I often use it when purchasing online, in stores and occasionally abroad.

Finally, if I do decide to open another account to gain the extra interest will there be a problem with me having 3 accounts currently open? As I only keep approximately £50 in HSBC and the rest is in my Lloyds account.

xxmumxx

Why not open a cash isa alongside your current account then you can take advantage of the tax efficient savings?

Plxply

xxmumxx wrote: »

Why not open a cash isa alongside your current account then you can take advantage of the tax efficient savings?

At the current time I'm attending sixth form and as such have filled out an R85 for both of my accounts to get tax free interest. However will I be able to get a higher interest rate with a cash ISA? All of the one which I have found required you to be 18+

CLAPTON

why not an ordinary savings a/c?
tesco internet saver offer 2.6% instant internet access although with a bonus for the first 12 months

Plxply

CLAPTON wrote: »

why not an ordinary savings a/c?
tesco internet saver offer 2.6% instant internet access although with a bonus for the first 12 months

I prefer being with a bank that I can physically go into a branch and shout at someone in the event something goes wrong

www.moneyfacts.co.uk/savings

The page does not seem to load for me.

Lokolo

Plxply wrote: »

I prefer being with a bank that I can physically go into a branch and shout at someone in the event something goes wrong

You'll never get the best rates if you refuse online and postal accounts.

Plxply

Lokolo wrote: »

You'll never get the best rates if you refuse online and postal accounts.

I've been poking around online accounts using the table I found at
http://moneyfacts.co.uk/compare/savings/accounts/best-sellers-savings/

The post office savings account looks most appropriate for me, however I want to confirm that I will 2.9% AER? There appears to be a section stating

includes 1.25% gross/AER fixed interest bonus for the first 12 months

So I assume after 1 year with them the AER will decrease to 1.65% and at that time I should search for another account?

Also as I'm only 16 years old, how will they validate the information which I provide if it's with the post office or another online account? I do not have a credit report being under 18 and I'm also not on the electoral roll, so I assume I will somehow have to provide them with my passport and a bill?

Thanks for your help everyone,

EDIT:

you must be a UK resident and resident in the UK for tax purposes and aged 18 or over

Oh darn, it seems my plans of having a post office online savings account have been foiled.

deady

Plxply wrote: »

I've been poking around online accounts using the table I found at
http://moneyfacts.co.uk/compare/savings/accounts/best-sellers-savings/

The post office savings account looks most appropriate for me, however I want to confirm that I will 2.9% AER? There appears to be a section stating



So I assume after 1 year with them the AER will decrease to 1.65% and at that time I should search for another account?

Also as I'm only 16 years old, how will they validate the information which I provide if it's with the post office or another online account? I do not have a credit report being under 18 and I'm also not on the electoral roll, so I assume I will somehow have to provide them with my passport and a bill?

Thanks for your help everyone,

You have to be 18 to get the Post Office account.
edit: oh, you already beat me to it!

Plxply

http://www.nationwide.co.uk/savings/cash_isa/eisa/

Does anyone know if anyone is able to beat Nationwide on their E ISA? I prefer opening an ISA with them as I would be able to walk into a branch and apply there with a human. However, I've read that I need a nationwide account, could I also just open a current account and keep £1 in to receive their E ISA?

rb10

Plxply wrote: »

http://www.nationwide.co.uk/savings/cash_isa/eisa/

Does anyone know if anyone is able to beat Nationwide on their E ISA? I prefer opening an ISA with them as I would be able to walk into a branch and apply there with a human. However, I've read that I need a nationwide account, could I also just open a current account and keep £1 in to receive their E ISA?

You won't get a rate much better than that one.

I expect that opening a current account with £1 would be sufficient to qualify you for that ISA. Alternatively, Halifax's ISA Direct Reward also pays 2.8% but does not require you to hold another account.

Plxply

Thanks for your help everyone,

I appreciate it and I have decided to go with Halifax as they do not require me to set up a current account which would require more work when there is already a better rate from a competitor.