errors in info on children's savings page

Jo10

Just wanted to flag up that the info under the heading Halifax / Bank of Scotland up to 4.25% AER on the children's savings page is inaccurate (sorry it won't let me post the link here). Firstly the saving rates are slightly out. You have to lock in for 3 yrs to get 3.8% and there's no 4.05% rate. Follow the link in the text to see the actual rates on Halifax website (I can't post the link here).

Also, more importantly, having just spoken to the Halifax to try and set up an account like this for my 2 year old, I was told that this account is not suitable for children because it's a web only account.

They suggested I set up a 3yr guaranteed reserve account for my daughter at a fixed rate of 4%. Or open a 5 yr stepped income reserve account in my name in trust for her (so still no tax). That earns 3.75% in yr1, 4.25% in yr2, 4.75% in yr3, 5.25% in yr4 and 5.75% in yr5. This does seem to be better than the Fixed Rate Web Saver - unless I'm missing something (which is highly possible!) Min balance £2k though.

Lokolo

Yes for the web only accounts the child has to be 11 to have it in their name.

But yes they are both better than the Fixed Rate Web Saver, which is most probably why it isn't in the "most popular" table

I am not sure which will be better out of the guaranteed reserve and the stepped income accounts, interest wise, because the first one will have more compound interest, but the second you will get more interest from year 2 onwards. She is only 2 so I would just go for the 5 year one assuming you definitely won't need it.