Halifax Save4it - what to do with the money for better interest

Ramblin'_Man

I have 2 children (aged 5 and 3) each with a rolling Halifax children's regular saver. Their Halifax Save4it accounts now have £5100 and £2400 respectively. As the interest for this account is only 1% I would like to find a better home for it. However as both kids are part of the CTF generation they are not allowed a childrens ISA.

I am thinking of opening 2 cash ISA's - one in my name and one in my wifes name as we haven't used our ISA allowances this year. However, not sure about the possible implications:

1. Can I take money from my sons save4it account and open an ISA account in my own name?
2. My wife and I each have our own existing ISA's that we'd like to transfer to better rates - for example can I open 2 ISA's in the same year (one for my sons money and one to transfer my existing ISA)? I'll only be paying new money into one of them.
3. If the ISA's are in our name, can we give that money back to our children when they are 18 without falling into some sort of tax / gift situation?

If anyone has done this, or something similar or different, then any advice or opinions would be greatly appreciated.

Thanks!!

PS - they each have a investment CTF which has £10 added each month. I don't want to add any more to this, it's just a small investment using the gvt's initial cash to see how it might grow with stocks and shares.

bye_bye_band_G

My husband and I both have Halifax kid's regular savers and also don't leave the money in the Save 4 It once it's rolled over. As the trustee for the Save 4 It you can request cheques payable to anyone you like. Just take your ID with the passbook into the branch. We have cheques made out to ourselves which we promptly put in ISAs in our names. If you want to have separate 'pots' for ISAs for money you are keeping to gift to the kids later and your own money that's fine. You can open multiple ISAs in a year for each person as long as you only put new money into one of them. And the only tax liability on giving one of the pots to your children at 18 would be if you went and died within 7 years of making the gift and were liable to inheritance tax (assuming you have enough assets to be liable for it that is!)