Do children have to have a children's account?

c190

As the title really! i have a regular saver for my 18 month old, which is about to mature and turn into an account with rubbish interest. I will be opening a new regular saver for her (Halifax, at 6 %) but I can't put the capital from the current one into it. So I'm looking for another savings account to put it into.

Some of the normal savings accounts (ie not children's ones) seem to pay a better rate of interest than the children's ones, so can I open one of those in her name to put the money in? It would have to be her name to prevent tax being paid on the interest, so I can't just put it in mine.

Any ideas?

Thank you!

MissKitty

Why don't you look at saving into a Junior Stocks and Shares ISA (JISA) for your daughter. As she is only 18 months old it will have a long time to grow.

If you check out some comparison websites they will give you the best rates. There isn't loads on the market at the moment as they only became available in November 2011. However there is more Stocks and Shares ones available than cash Junior ISA's.

I took out a cash one for my daughter as she is nearly 10 and I don't think 8 years is enough time for a Stocks and Shares ISA to grow for her. When they turn 18 they convert to an adult ISA. You cant withdraw the cash from a Junior ISA like you can with an adult one, but you can still move them to different providers when their rates drop.

thenudeone

Some standard savings accounts have a minimum age (often 16) but others can be opened much younger (sometimes by parents acting as trustee).

Unfortunately there is no easy way round wading through the conditions for the account(s) you want to see what their terms are.

xylophone

The OP's child is 18 months old and may not be eligible for a junior ISA.
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/SavingsAndInvestments/ISAsandJuniorISAs/DG_199672

As to the original question, you are not confined to children's accounts when saving for your child. If the savings provider is willing to accept a 're' account, you can invest in other types of account, fixed rate bonds etc.


See also http://www.hmrc.gov.uk/tdsi/children.htm

couponmamma

In my personal views, Gov. will catch you if you do like this. :-)

Newly_retired

I have just opened Young Saver accounts for my grandchildren at 3%. You have to hold a current a/c with Lloyds, but otherwise the T & C are not onerous, and the child does not need to know about it. If the parents complete an R85 interest can be paid gross.

MissKitty

opinions4u wrote: »

Remember that those with a Child Trust Fund can't have a Junior ISA.

They can utilise their CTF in a similar way to what you suggest though.

As for what savings account ... depends on the individual provider's T&Cs.

http://www.moneysavingexpert.com/savings/child-savings-tax-free?utm_source=forum&utm_medium=clicks&utm_campaign=resourcebar

Your right, I have just realised my mistake, sorry.

c190

Thanks all. I already have a CTF for her, so can't get the junior ISA. I've opened the Lloyds 3% junior saver for her with the savings from the regular saver that just matured. Forgot to ask for the tax form though - doh!

xylophone

c190 wrote: »

Thanks all. I already have a CTF for her, so can't get the junior ISA. I've opened the Lloyds 3% junior saver for her with the savings from the regular saver that just matured. Forgot to ask for the tax form though - doh!

Have you checked out
http://www.hmrc.gov.uk/tdsi/children.htm for information re tax and children, especially on income arising on gifts to children from parents?

Newly_retired

You can download R85 from hmrc website.

thenudeone

Just found that the moneyfacts advanced search facility allows you to select children's accounts at the same time as the usual search factors (eg access, term, amount)
http://moneyfacts.co.uk/compare/savings/accounts/search/

If I had found it earlier it would have saved a fruitless hour scanning small print to find the minimum ages on standard accounts:(

Just put money into a Yorkshire 5 yr fixed @ 4.25% and trying (despite Halifax staff's efforts) to open a 3yr fixed rate @ 3.85%, which I found from moneyfacts.