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Childrens Savings
Legacy_user
Posts: 0 Newbie
My 16 year old currently has a Smart account with the Nationwide with just over £5000 in it. She has an R85 in place and so gets her interest of approx 5.01% paid gross. As we allow her to spend the interest she gets on the understanding that the original £5000 remains untouched for her education I was wondering do you think it might be better for her to transfer £3000 to say an Abbey or First Direct ISA before the 5th April and another £2000 in the new tax year since both pay more interest than the Nationwide. Are there any potential pitfalls I should know about.
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Comments
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I can't see a problem with that. You wouldn't get any immediate tax benefit as her savings are tax free anyway, but it's a better interest rate and the funds would be in an ISA ready for when she becomes a taxpayer in the future.0
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