what's the best savings account for 16 year old

Jonny_the_Boy

My son is due to turn 16 and he is cashing in his Childrens Bonds can you give advise where he should invest his money but he wants to be able make cash withdrawls.thank you

xylophone

Maybe http://www.ybs.co.uk/savings/online/internetsaver/index.html
http://www.lloydstsb.com/current_accounts/under_19s_account.asp

opinions4u

He can look at cash ISA now, so should be able to get 3% or more from the likes of Santander or Halifax and have easy access. If he wants to tie money up for a longer period, then you could stick his money in a Junior ISA and it then reverts to him when he is 18. Fixed Rate ISAs are another choice to consider.

Some providers of online accounts need him to be 18 before he can have their account. But there are many who accept younger people.

So what are the plans for the money?

psychic_teabag

What are the benefits of a junior ISA over a fixed-term adult ISA ? (AFAIK can't access Junior ISA until 18.) Might allow you to split the money - some in an instant-access adult ISA and some in a junior ISA, to get round the restriction of one cash ISA. (Though I think Nationwide allows ISA to to be split over multiple accounts.)

Jonny_the_Boy

I think he will be saving the money for a car and driving lessons in the future or some kind of transport or even he's thinking about going to university after sixth form

opinions4u

psychic_teabag wrote: »

What are the benefits of a junior ISA over a fixed-term adult ISA ? (AFAIK can't access Junior ISA until 18.) Might allow you to split the money - some in an instant-access adult ISA and some in a junior ISA, to get round the restriction of one cash ISA. (Though I think Nationwide allows ISA to to be split over multiple accounts.)

1) Junior ISA puts the money out of reach for a year or two.

2) it's possible to have both. £5,640 in adult ISA and £3,600 in a Junior ISA.

3) if you play the Halifax game you can get 6% on a Junior ISA.

Jonny_the_Boy

Many thanks I will look into all the responses,thanks again

psychic_teabag

Ah - I forgot that fixed-term ISA doesn't mean no access : can usually access the money early, with a penalty. I guess JISA is genuinely out of reach.