MSE News: Lloyds TSB first big bank to launch junior cash Isa

emweaver

the halifax one net pa is 4.8% , not 6%.

Kids' Regular Saver example - If you save £50 each month, you'll earn £18.97 gross (£15.18 net) interest after 12 months.

So its not that good really if you think you are only receiving £15.18 a year when your saving £600 a year

rb10

emweaver wrote: »

the halifax one net pa is 4.8% , not 6%.

Kids' Regular Saver example - If you save £50 each month, you'll earn £18.97 gross (£15.18 net) interest after 12 months.

So its not that good really if you think you are only receiving £15.18 a year when your saving £600 a year

Most (but not all) children are not taxpayers, so it is the AER that is relevant.

You'll get around twice as much interest on this account than the amount you'll get on most other accounts.

jimjames

Charliechap1980 wrote: »

As i believe Martin said a while ago, we all get a tax free allowance even if you a child. So a junior isa is no different from a Childrens saving account.

The one i have currently is the Halifax kids regualr saver 6.0% AER bank account.

if so my question again is which account is better?

If you have a bank account or investment in your childs name and you as a parent pay into it then any interest over £100 is counted as your income and taxed accordingly. So regardless of your child having the tax free allowance they cannot use it if it was your gifted money that generated the interest. If you are not a higher rate taxpayer now then if the funds built up and you are later on then you will be taxed on the additional income at the higher rate.

A Junior ISA will avoid this problem.