Halifax Children's Regular Saver reaching maturity

Paphos_Gooner

So the 12 months will be up soon and looking what to do next and was wondering what some of you could suggest?

It's got a £1000 in and I haven't opened up an ISA for myself this year so would I be best putting my daughter's money into a new ISA or find another account completely seperate from my personal ones for her? She's already got a CTF so I don't fancy waiting for a Junior ISA and tying up more of her money for the next 14 years.

Also can I open another Halifax Childrens Reg Saver account and start again?

Thanks for any help :beer:

YorkshireBoy

Paphos_Gooner wrote: »

...would I be best putting my daughter's money into a new ISA or find another account completely seperate from my personal ones for her?

You should put it in the account that pays the highest interest. Personally I'd keep it seperate to your own.

Also can I open another Halifax Childrens Reg Saver account and start again?

Yes, but don't forget to cancel the old SO (that will continue into the "easy access savings account" if you do nothing).

http://www.halifax.co.uk/savings/accounts/childrens-savings/childrens-regular-saver/

Money_maker

Yes, you can have another one of these accounts - think mine were opened up automatically as I kept the standing order going. I did ring to double check the interest rates though. I find it best to keep the childrens money separate particularly if you are a tax payer. Halifax automatically send it to your daughters ordinary savings account and will send you a statement.

Money_maker

YorkshireBoy wrote: »

but don't forget to cancel the old SO (that will continue into the "easy access savings account" if you do nothing).

http://www.halifax.co.uk/savings/accounts/childrens-savings/childrens-regular-saver/

Oh, mine was not cancelled and I this is the third year I have had these accounts running.

Paphos_Gooner

Thanks for the advice guys.

The plot thickens though as I got home yesterday to find a letter from the Halifax advising me that the 12 months is nearly up so if I want to close the account cancel the SO.

However it then went on to say that should I wish to keep the account open it would transfer the balance to another account which is currently paying 6% interest AER, which of course is what I'd much prefer

Think a telephone call just to check is in order.

Paphos_Gooner

Okay so just got off the phone with them and they will move the balance of the CRS so far over to the Save4It account and my SO keeps getting paid into the original CRS when, after another 12 months, the process is repeated.

Sooooo that's me looking to transfer 12 months of savings out somewhere else then; happy that the CRS account will stay open though.

jennifernil

The rules changed last July I think. RSs in force before then, according to what my branch told me, will continue for another year then move to the new rules. The matured balance will go to the Save4It.

Newer accounts do not continue but convert to some other savings account (as said previously), and you need to cancel the SO and set up a new RS to continue getting the 6% rate. You also need to move the balance to a decent account.

There is one Halifax fixed term/fixed rate account open to children, check their list (Guaranteed Reserve I think). Or look for better rates elsewhere. We moved our grandchildren's to Northern Rock Little Rock accounts a few months back, but there likely better rates elsewhere now. On holiday at present, but must check rates as soon as we get back as another move is probably required now.

Paphos_Gooner

Looks like I'll go with Northern Rock Little Rock too I think for the Save4It balance. Might see if it's worth drip feeding £150 p/m into a Principality Children's Regular Saver - can I set up a standing order from the Little Rock account?

jennifernil

I rather think the answer to that might be "no", but best to check with them direct.

I do know that you need to present the pass-book to make a withdrawal, but I don't have the literature to hand right now to check on whether they offer SOs. You can transfer into the account electronically.

Sponge

This is something that has always raised questions in my mind, as I keep getting confusing, possibly conflicting, information from the Halifax.

When I opened HCRS accounts in March 2008 for children #1 and #2, they opened two accounts for each - the Reg. Saver and a Save4it. At the end of 12 months the money in the RS account would transfer to the S4it account. (Same sort code, different account numbers and roll numbers.)

I kept the SO active and initially assumed the money was going into a 'renewal' of the CRS account, at whatever the new interest rate was for that year.

However, reading various things online and information on Halifax's own website lead me to believe the SO may actually be paying into the S4it account and receiving substantially less interest.

I seeked clarfication in-branch and was assured that my SO was still paying into the CRS account and getting the higher interest (now 6%). It was hard for me to check statements and confirm for myself, as I vary the SO each month as and when I have to, i.e. when cashflow become tight, and I couldn't get the figures right in my head. So I remained sceptical.

Roll forward to today and I have just got off the phone with the Halifax having opened a 3rd HCRS account for new child #3.

They now no longer open a Save4it account at the same time. They will contact me prior to the 12 month anniversary to ask me what I want to do.

She confirmed that, as with my other two accounts, if I keep the SO active it will indeed keep paying into a HCRS account at that years interest rate (currently 6%). She checked my other two account and re-confirmed that is what was happening with their SO payments.

I then pointed out that their website says and asked if I need to 'renew' my other two HCRS accounts.

What happens after 12 months?
Your Children's Regular Saver Account, including the balance and interest, will mature into an easy access savings account on the anniversary of our receipt of your opening deposit for your Children's Regular Saver Account. Your sort code and account number will remain the same and your standing order will continue into your easy access savings account unless you choose to stop it.

She said no and that my SOs for those accounts are still paying into HCRS accounts and I was getting 6%.

I'll admit, I'm still not 100% happy. Could it be that the two older accounts are still active, automatically 'renew' each year (start at zero as funds are moved to, and subsequently withdrawn from, Save4it accounts). Whereas the account I opened today will not.

jennifernil

That is what I was told, see my post further back. But this year is supposed to be the last year they automatically renew.

We have some from before and after the supposed change, so I am watching to see what actually happens.

No idea why they had to go and change things, it will be a real pain having to set up new accounts if that is what happens.